DBOD.No. BC.48/08.95.004/98

 

May 30, 1998

Jyestha 10, 1920 (Saka)

 

The Chairman and Chief Executive Officer/Managing Director of all Private Sector Banks

Dear Sir,

 Official Visits abroad by Chairman and Chief Executive Officer

Please refer to our Circular No. 435/08.95.004-92 dated 31 October 1992 in terms of which the Chairman and Chief Executive Officer and other executives of Indian private sector banks could undertake visits abroad for business purposes like holding discussions with correspondents, participating in seminars etc., with the approval of their Board of Directors, for a period not exceeding 10 to 12 days. It was also advised that the banks should send to this Department a synopsis containing the salient features of the visit and the details regarding specific follow up measures, initiated by it, in pursuance to the visit undertaken.

2. We have since reviewed the matter and it has been decided that the banks need not henceforth submit reports on overseas visits undertaken by the Chairman and Chief Executive Officer/other executives.

3. It is further advised that banks need not also seek our prior approval under Section 10B(9) of the B.R. Act, 1949 for substitute arrangements made in the absence of the Chief Executive Officer/Managing Director while he is on official tour. The visits and substitute arrangements made should, however, be with the prior approval of the Board of Directors of the bank. The concerned Regional Office of RBI may be kept informed of the visit and substitute arrangements made.

4. As regards release of exchange for such visits banks may be guided by the provisions of Chapter 8 of the Exchange Control Manual 1993.

Yours faithfully,

(Smt. Chitra Chandramouliswaran)

General Manager