In order to provide greater operational flexibility, it has been decided that prior Reserve Bank of India approval for: (a) infusion of capital in their overseas branches and subsidiaries; and (b) retention of profits in, and transfer or repatriation of profits from these overseas centres, shall not be required by banks which meet the regulatory capital requirements (including capital buffers).
Instead, the banks shall seek approval of their boards for the same. The notification is applicable to all scheduled commercial banks (other than foreign banks), small finance banks, payment banks and regional rural banks.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.