RBI relaxes rules for engaging expats by foreign banks

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. RBI said this has been done on the specific request of some foreign banks to remove the numerical restriction on engagement of expats.

''We have been receiving requests from some of the foreign banks to remove the numerical restriction on engagement of expatriates in view of the operational difficulties faced by them in doing business in India. In the light of these requests, the position in this regard has since been reviewed in consultation with the Government of India. It has been decided that a foreign bank can deploy a maximum of four expatriates for each branch opened in India and not more than six expatriates for their head office functions,'' RBI said in a release.

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.