Transfer of assets of Liaison / Branch Office to subsidiaries or other Liaison Office / Branch Office or any other entity is permitted only with the specific approval of the Central Office of the Foreign Exchange Department, Reserve Bank of India

 Transfer of assets of Liaison / Branch Office to subsidiaries or other Liaison Office / Branch Office  or any other entity is permitted only with the specific approval of the Central Office of the Foreign Exchange Department Reserve Bank of India.

Attention of Authorised Dealer Category – I (AD Category – I) banks is invited to A.P. (DIR Series) Circular No.24 dated December 30, 2009 in terms of which powers have been delegated to the AD Category-I bank regarding submission of Annual Activity Certificate by BO / LOs, extension of the validity period of LOs and closure of BO / LOs of foreign entities in India.

2. In the A.P. (DIR Series) Circular mentioned above, powers as regards the transfer of assets of LO / BO to others have not been delegated. It is, therefore, clarified that transfer of assets of Liaison / Branch Office to subsidiaries or other LO / BO or any other entity is permitted only with the specific approval of the Central Office of the Foreign Exchange Department, Reserve Bank of India.

Ref- RBI/2011-12/421- A.P. (DIR Series) Circular No.88 dated 1 March 2012