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
Auditors of the bank
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.