RBI
RBI gives general permission for infusion of capital in overseas branches and subsidiaries and retention/ repatriation/ transfer of profits in these centres by banks incorporated in India
As per existing practice, banks incorporated in India were required to seek prior RBI approval for
infusion of capital in their overseas branches and subsidiaries.
retention of profits in, and transfer or repatriation of profits from these overseas centres.
RBI, in order to provide greater operational flexibility, has removed the requirement of prior RBI approval for above capital infusion/ transfers (including retention/ repatriation of profits) by banks which meet the regulatory capital requirements (including capital buffers). Instead, the banks shall seek approval of their boards for the same.
It has been laid down that while considering such proposals, banks shall analyse all relevant aspects including inter alia the business plans, home and host country regulatory requirements and performance parameters of their overseas centres. Banks shall also ensure compliance with all applicable home and host country laws and regulations.
Banks which do not meet the minimum regulatory capital requirements as laid down, shall be required to seek prior approval of RBI as hitherto.
Further, banks shall report all such instances of infusion of capital and/ or retention2/transfer/ repatriation of profits in overseas branches and subsidiaries within 30 days of such action, to the Chief General Manager-in-Charge, Department of Regulation, Central Office, Mumbai with a copy to Chief General Manager-in-Charge, Department of Supervision, Central Office, Mumbai.
RBI specifies ‘Related Party’ with respect to bank RBI has issued RBI Credit Risk Management Directions, 2025 defining ‘Related Party’…
Advisory on Filing Opt-In Declaration for Specified Premises, 2025 Dear Taxpayers, The relevant declarations issued vide Notification No. 05/2025 –…
FAQs for HSNS Cess Act, 2025 and HSNS Cess Rules, 2026 Q1. Who is required to get registered under the…
Refusing to condone delay can result in a meritorious matter thrown out at very threshold against case being decided on…
When prior period expenses are not admissible as deduction, following the same principle the prior period income also cannot be…
Supreme Court condoned delay of 972 days in filing appeal due to restructuring in Income Tax Department In a recent…