What changed
Previously, all banks needed prior RBI approval for capital infusion or profit retention/repatriation in overseas branches and subsidiaries. Now, banks that meet regulatory capital requirements (including CCB, D-SIB, and CCyB) can do so with board approval instead. Banks not meeting these requirements must still seek RBI approval.
What it means for you
This gives compliant banks greater operational flexibility and reduces regulatory delays for overseas capital management. Banks must still ensure compliance with home and host country laws and report actions within 30 days. Non-compliant banks face continued RBI oversight.
What you must do
- Verify your bank meets all regulatory capital requirements including CCB, D-SIB, and CCyB before using this general permission.
- Obtain board approval for any capital infusion or profit transfer to overseas branches/subsidiaries.
- Report all such actions to RBI's Department of Regulation and Department of Supervision within 30 days.
- For profit retention, report within 30 days of finalising the overseas branch/subsidiary's annual financial statements.
Who it affects
All Scheduled Commercial Banks (excluding foreign banks, Small Finance Banks, Payment Banks, and RRBs), Banks with overseas branches or subsidiaries
Which banks are eligible for this general permission?
Only Scheduled Commercial Banks (excluding foreign banks, Small Finance Banks, Payment Banks, and RRBs) that meet minimum regulatory capital requirements, including CCB, D-SIB, and CCyB, are eligible.
What is the reporting timeline for capital infusion?
Banks must report any capital infusion or profit transfer/repatriation to RBI within 30 days of the action. For retained profits, the 30-day period starts from the finalisation of the overseas branch/subsidiary's annual financial statements.