RBI modifies reporting norms for rep offices of foreign banks

MUMBAI: The RBI today modified reporting norms for Representative Offices (ROs) of foreign banks in the country and asked them provide details of top clients introduced to the parent bank, among others.

Currently, the ROs are required to submit a certificate from the auditor to the effect that during the year no income was earned by or accrued to the office in India, a certified copy of audited final accounts, details of remittances received and an annual report of the work done by the office in India.

"On a review, it has been decided to revamp the existing system of reporting...and the same would be effective from the next reporting cycle," the Reserve Bank said in notification.

Now, ROs would have also to provide details of correspondent banking relations with Indian banks, exposure of head office and other offices of the bank or group to corporates or banks in India and duties and role of staff of ROs in India.

ROs would have also to provide details of listing in stock exchange of group or associate companies and strategic investments, if any, made by the bank or group in banking or non-banking sector in India.