RBI asks banks to draw up policy for property deals abroad

Tags: News
The Reserve Bank of India has asked banks with offices abroad to formulate a policy for overseas real-estate transactions.

The RBI said it has come to its notice that some Indian banks have committed certain lapses while buying or selling real estate and taking or letting out property on lease or rentals in some places in foreign countries, it said in a notification today.

"To avoid such lapses in future, it is advised that boards of directors of banks should lay down policies and formulate detailed operational guidelines to protect the interests of their respective banks," the RBI said.

It asked banks to ensure that all real-estate and property transactions at overseas centres are undertaken as per the board-approved policy.

The banks should comply with the Foreign Exchange Management Act, Banking Regulation and other relevant Indian laws.

"The policy should, inter alia, require the agreements for acquiring or letting out premises on rental/lease basis to incorporate a suitable exit clause," it said.

The RBI also said banks should comply with all applicable laws of the host country, city or locality while making such deals.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • India must take the UN’s lead in recognising gay rights

    In what has by now become a matter of course, our judiciary again demonstrated that it is miles ahead of our government in terms of staying in tune wi

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

Today's Columns

Urs Schoettli

Lee’s legacy will always guide Singapore

LEE Kuan Yew, the father of modern Singapore, died last ...

Rajgopal Nidamboor

Forget the past and embrace the present

It is all right to believe that one should always ...

Bubbles Sabharwal

Relationships and bitter realities

It’s a tangled web we spin The relationships we make, break ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture