RBI relaxes expat rules for foreign banks

Foreign banks can now place up to 3 expats in each branch opened and 6 in head office functions

The Reserve Bank of India (RBI) has allowed foreign banks to deploy up to four expatriates for each branch opened in India and up to six expatriates for their head office functions.

The banking regulator said it decided to review its position after some foreign banks requested it to remove the numerical restriction on engagement of expats.

These banks had expressed concerns about the numerical restrictions in view of the operational difficulties faced by them in doing business in India.

This move is expected to benefit and help foreign banks get global expertise for their Indian operations as well.

However, the regulator clarified that the other instructions with regard to the posting of trainee officers and remittance facilities by the expatriate officers in Indian branches remain unchanged.