RBI issues norms for branch offices by foreign entities

The Reserve Bank on 13 May said that entities from Pakistan, China, Bangladesh and four other regions will require its prior approval to establish branch office or project office in India. 

• Other countries and regions are Sri Lanka, Afghanistan,Iran and Hong Kong or Macau, RBI said while releasing guidelines for foreign entities to open a branch office (BO) or a liaison office (LO) or a project office (PO) in India. 
• Permission of RBI will also be required for opening a BO/LO/PO in Jammu and Kashmir, North East region and Andaman & Nicobar Islands.
•  The approval is also required if the applicant is a Non-Government Organisation (NGO), a Non-Profit Organisation, or a Body/ Agency/ Department of a foreign government. 
• It will also be needed if the principal business of the applicant falls in the four sectors — defence, telecom, private security and information and broadcasting.