RBI tells unlicenced foreign entities to get a clearance from it

KOLKATA: Reserve Bank of India has told foreign agencies operating in India without its consent to approach it for a formal clearance.

The central bank found that liaison offices or branches established by overseas NGOs, news agencies and other foreign entities are continuing to function in India without prior approval.

Under the Foreign Exchange Management Act (FEMA), 1999, foreign entities can open offices only after receiving permission from RBI. This norm has come into effect since June 1, 2000. RBI consults with the government about such request of it feels necessary.

So, RBI has advised such foreign entities to seek clearance in the next three months from now. It further said that foreign entities who have established offices with the permission from the government should also approach the bank with a copy of the said approval.

Source: EconomicTimes