Home › Circulars › RBI/2008-09/128

RBI allows hospital trusts/societies to invest overseas

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2008-09/128 · issued 13 Aug 2008 · ~1 min read
Quick answerRBI now permits registered trusts and societies that operate hospitals in India to invest in joint ventures or wholly owned subsidiaries abroad in the same sector, subject to prior RBI approval and eligibility criteria.

What changed

Previously, only trusts/societies in manufacturing or education could invest overseas. Now, those running hospitals in India are also allowed to make overseas direct investments in the healthcare sector, with prior RBI approval.

What it means for you

Banks must guide eligible hospital trusts/societies through the ODI application process via Form ODI-Part I. This expands cross-border investment opportunities for non-corporate entities in healthcare, potentially increasing demand for foreign exchange and compliance monitoring.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Who it affects

Registered trusts and societies operating hospitals in India, AD Category-I banks handling ODI applications, RBI's foreign exchange monitoring division

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Can a trust running a hospital invest in a hospital abroad without RBI approval?

No, prior RBI approval is mandatory for such investments, as per this circular.

What form must be used for the application?

Applications must be submitted in Form ODI-Part I through the AD Category-I bank.

Does this circular change any other reporting requirements?

No, all other terms, conditions, and reporting requirements from the earlier June 2008 circular remain unchanged.

📜 Read the original circular — full text as issued by RBI
RBI/2008-09/128 A. P. (DIR Series) Circular No. 07 August 13, 2008 To, All Category - I Authorised Dealer Banks Madam / Sir, Overseas Direct Investment by Registered Trust / Society Attention of Authorised Dealer Category - I (AD Category - I) Banks is invited to A. P. (DIR Series) Circular No. 53 dated June 27, 2008 , permitting Registered Trusts and Societies engaged in manufacturing / educational sector and satisfying the eligibility criteria prescribed in the Annex to the Circular to make investment in the same sector(s) in a Joint Venture or Wholly Owned Subsidiary outside India, with the prior approval of the Reserve Bank. 2. As a further measure of liberalisation, it has been decided, in consultation with the Government of India, to allow Registered Trusts and Societies which have set up hospital(s) in India to make investment in the same sector(s) in a Joint Venture or Wholly Owned Subsidiary outside India, with the prior approval of the Reserve Bank. Trusts / Societies satisfying the eligibility criteria as prescribed in the Annex to the abovementioned circular may submit the application/s in Form ODI-Part I, through their AD Category - I bank/s to the Reserve Bank for consideration. The other terms and conditions and reporting requirements listed in the above mentioned A.P. (Dir Series) Circular remain unchanged. 3. Necessary amendments to the Foreign Exchange Management (Transfer or Issue of any Foreign Security), Regulations, 2004 notified vide Notification No.FEMA120/RB-2004 dated 7th July 2004 are being issued separately. 4. AD Category - I banks may bring the contents of this circular to the notice of their constituents and customers concerned. 5. The directions contained in this Circular have been issued under Section 10 (4) and 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice to permissions / approvals, if any, required under any other law. Yours faithfully, (Salim Gangadharan) Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/128 · issued 13 Aug 2008. The plain-English explanation above is BankPulse’s own independent summary.
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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=4416&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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