PTI mumbai

The Reserve Bank on Friday proposed to rationalise norms for establishment of a branch or office in the country by entities resident  outside India.In this regard, the central bank has issued 'Draft Foreign Exchange Management (Establishment in India of a branch or office) Regulations, 2025'.

"The draft proposals offer greater operational freedom by shifting from prescriptive to a principle-based framework, which is expected to result in greater operational freedom," the RBI said.Further, the eligibility criteria for establishment of a place of business in India, are proposed to be relaxed, it added.

Regarding opening a branch or office in India, the draft said an Entity Resident Outside India (EROI) should submit an application in a specified form to a bank, who may grant approval as per these proposed regulations.Post approval and opening of an account for the branch or office, the bank would report establishment of such office to the Reserve Bank of India.

Non-residents allowed to invest in corp debt via SRVAsThe Reserve Bank on Friday allowed persons residing outside the country to invest in corporate debt securities through Special Rupee Vostro Accounts.Earlier, such entities were only permitted to invest their rupee surplus balance in accounts in central government securities, including treasury bills."It has now been decided to also permit investment of these balances in non-convertible debentures/bonds and commercial papers issued by an Indian company," the RBI said.