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.
What you must do
- Inform eligible hospital trusts/societies about this new overseas investment option.
- Verify that applicants meet the eligibility criteria from the earlier circular's Annex before processing.
- Accept and forward Form ODI-Part I applications from such entities to RBI for prior approval.
- Ensure all other terms, conditions, and reporting requirements from the June 2008 circular remain unchanged.
Who it affects
Registered trusts and societies operating hospitals in India, AD Category-I banks handling ODI applications, RBI's foreign exchange monitoring division
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.