MUMBAI : The conversion of a foreign bank’s existing branch in India to a wholly-owned subsidiary will be exempt from capital gains tax and stamp duty as per current government norms, the Reserve Bank of India clarified.
Transfer of shareholding of a foreign bank to a holding company as per RBI guidelines will also not attract stamp duty, said the central bank.
Earlier this month, RBI said wholly-owned subsidiaries of foreign banks will be given “near-national treatment” and will be allowed to open branches anywhere in the country, putting them on par with Indian banks.
Existing branches of foreign banks which desire to convert into wholly-owned subsidiaries will need to have a net worth of 5 bln rupees, the central bank had said. -Cogencis