RBI asks foreign firms to regularise branch offices

The Reserve Bank of India (RBI) today directed all the foreign entities, including non-government organisations (NGOs) and news agencies, operating in the country through branch offices to obtain clearance from it within three months under the FEMA Act.

"The foreign entities who have established branch offices or liaison office in India and continuing to function without obtaining permission from the RBI should approach it within a period of 90 days from the date of issue of this circular for regularisation of establishment of such offices in India, in terms of the extant FEMA provisions," the central bank said in a statement.

The foreign entities who may have established branch offices or liaison office with the permission from the government may also approach the RBI along with a copy of the said approval for allotment of a Unique Identification Number (UIN) by the central bank, it said.

The statement said, it had come to the notice of the RBI that certain branch offices or liaison office established by the foreign NGOs, non-profit organisations, news agencies and other foreign entities are continuing to function in the country, without the approval of the bank, after the Foreign Exchange Management Act (FEMA), 1999 came into force from June 1, 2000.