New FAQ Page 2 - ஆர்பிஐ

RbiAnnouncementWeb

FAQ DetailPage Breadcrumb

Search Bar

முடிவுகளை தேடுக

Liaison / Branch / Project Offices of foreign entities in India

Q.11. Whether for closure of additional office, the same procedures as mentioned in ‘Closure of BO/LO/PO’ need to be adhered to? +

Ans. Yes

Q.12. Do AD banks need to obtain UIN from RBI for PO? +

Ans. No

Q.13. If the applicant is a citizen of or is registered/incorporated in Bangladesh, Sri Lanka, Afghanistan, Iran, China, Hong Kong or Macau and the application is for opening a BO/LO/PO in other cities/states excluding Jammu and Kashmir, North East region and Andaman and Nicobar Islands, can the AD bank permit the same without referring the matter to the Reserve Bank? +

Ans. Yes

Q.14. Whether AD bank can approve the transfer of assets of LO/BO/PO to third resident party ? +

Ans. Yes

Q.15. Can a subsidiary of Indian company abroad open a BO in India and whether this will come under automatic route? +

Ans. No

Q.16. If the subsidiary of Indian company is not financially sound can they submit a Letter of Comfort from their parent company which is an Indian company? +

Ans. No

Q.17. Can AD bank approve for extension of the project account after the tenure of the project for genuine reasons like completion of warranty period, statutory works like Income tax assessments, VAT assessments, Service tax assessments, to make arrangements for the sale of assets etc. +

Ans. Yes, under intimation to Reserve Bank, FED, CO Cell, Sansad Marg, New Delhi 110 001.

Q.18. Can BO open FCY account for doing normal business transactions? +

Ans. No

Q.19. Can BO/PO/LO have one more account with another AD bank (Agency bank for tax payment) for statutory payments when the AD with whom the account is maintained is not the agency bank? +

Ans. Yes

Q.20. What are the permissible credits and debits to INR account of Project Office? +

Ans. The credits to the account should represent the funds received from head office through normal banking channels for meeting the expenses of the office and/or the rupee amounts receivable if any, under the contract and no other amount should be credited without prior permission of the Reserve Bank. Similarly debits to this account could be raised only for meeting the local expenses of the office and intermittent remittances pending winding up / completion of the project.

For the intermittent remittances, the AD bank should be satisfied with the bonafides of the transaction and ensure submission of the following documents:

a. An Auditors’ / Chartered Accountants’ Certificate to the effect that sufficient provisions have been made to meet the liabilities in India including Income Tax, etc.

b. An undertaking from the PO that the remittance will not, in any way, affect the completion of the project in India and that any shortfall of funds for meeting any liability in India will be met by inward remittance from abroad.