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The Reserve Bank of India (RBI) on Wednesday said it has decided to revise the way representative offices of foreign banks in the country report information pertaining to their operations here.
Currently, foreign lenders' representative offices in India are required to submit information on an annual basis to the banking regulator. The information and documents include [i] a certificate from the auditor to the effect that during year no income was earned or accrued to the India office, [ii] certified copy of the audited final accounts of the representative office, [c] details of remittances received from abroad duly supported by bank certificates, and [iv] an annual report of the work done by the office here.
"On a review, it has been decided to revamp the existing system of reporting," RBI said in a statement adding that the revised format of reporting will be effective from next reporting cycle.
As per this new format, representative offices will now have to furnish detailed information about itself (like date of setting up, address, details of chief representative, etc.) and provide data set on its business in India. Representative offices will also have to submit information about the bank specifying ownership pattern, financial position, joint ventures or subsidiaries of the group.
Representative offices will also have to mention regulations in home country on entry and expansion of foreign banks, including, forms of presence allowed. Details of major supervisory measures or actions by home country or other host country regulators will also have to be provided.
