DBOD.No. IBS.BC.99/23.09.001/98-99

October 9, 1998

Jyestha 7, 1920 (Saka)

The Chief Executives of foreign banks operating in India

Dear Sirs,

Remittance of profits by Foreign Banks operating in india

Please refer to AD (MA Series) Circular No. 15 dated 4th June 1998 in terms of which foreign banks need not approach RBI for prior approval for remittance of net profit/surplus (net of tax) earned in the normal course of business arising out of their Indian operations, to their Head Offices provided they comply with the provisions of Banking Regulation Act, 1949 and directions issued by RBI in this regard.

2. In this connection, foreign banks are advised to submit to this Department, full details of remittances made in terms of the abovementioned Circular, in the form of a Satement (proforma enclosed), immediately after the remittance is made. Even in case no remittance is made in any year, this Statement is to be submitted giving other particulars.

3. A copy of the Statement may also be submitted to the Chief General Manager, Department of Banking Supervision, Reserve Bank of India, Central Office, Centre I, World Trade Centre, Cuffe Parade, Mumbai 400 005 and the Chief General Manager, Exchange Control Department, Reserve Bank of India, Central Office, Central Office Building, Mumbai 400 001.

Yours faithfully,

(Devaki Muthukrishnan)

General Manager

Remittance of profit to Head Office

Name of the bank

i) The year for which profits/surplus was remitted

ii) Net profit as per the Profit & Loss Account

iii) Income of the bank during the year

iv) Expenditure in India (without provision for H.O. Expenses)

v) H.O. expenses charged to P & L Account

vi) Rate at which income/interest tax is payable for the year in question

vii) Provision for tax calculated at full rate on the entire amount of surplus [i.e. item (iii) - (iv) + (v)]

viii) Details of various provisions made

(a) Actual provision made for tax

(b) For bad and doubtful debts

(c) Terminal benefits of the staff

(d) Other provisions, if any

ix) Amount transferred to reserves (give details)

x) Tax liabilities of previous years if any, remaining unpaid

xi) Amount, if any, retained in India for meeting CRAR requirements

xii) Amount of profit/surplus remitted to Head Office and the rate of exchange applied

xiii) Date of remittance

xiv) Capital funds on the date of remittance

xv) CRAR on the date of remittance

Certified that -

i) The entire income of the bank included in the accounts for the year had accrued from sources in India and the provisions of B.R. Act 1949 and the directions issued by RBI in this regard have been complied with. [In case a part of the income had accrued outside India, the certificate should clearly indicate that the amount thereof was repatriated to India immediately on realisation].

ii) The amount set aside as provision for tax is adequate to cover the tax liabilities of branch(es) in India of the bank for the year in question.

Chief Executive Officer of the bank

(Name of the signatory and stamp)

Auditors of the bank

(Name of the signatory and stamp)

Note - If the remittance relates to unremitted profits of earlier years which have not been retained for capital adequacy but are held for remittance abroad, full details, year-wise, may be furnished.