Monday, January 15, 2007

Establishment of offices abroad

With a view to liberalise the procedure of establishing offices abroad and to provide greater flexibility, it has been decided to :

  • Increase the limit for initial expense for Authorised Dealer (AD) category – I bank who may now allow remittance up to 15% of average annual sales / income or turnover during the last two financial years or up to 25% of net worth, whichever is higher.
  • Increase the limit of Recurring Expenses for AD Category – I Banks who may now allow remittance up to 10% of average annual sales/ income or turnover during last two financial years.
AD Category-I banks may also now allow remittance by Indian Companies, having overseas offices, within the above limit of initial and recurring expenses, to acquire immovable property outside India for its business and for residential purposes of its staff.

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