Page 53 - Banking Finance December 2020

RBI CIRCULAR

RBI

CIRCULAR

Establishment of Branch Office (BO) / Bank in case any such violation of the provisions of the
Advocates Act comes to their notice.
Liaison Office (LO) / Project Office (PO)
3. All other provisions of the BO/LO/PO policy shall
or any other place of business in India by remain unchanged. AD Category - I banks may bring

foreign law firms the contents of this circular to the notice of their
constituents and customers.
RBI/2020-21/69
4. The Master Direction No. 10 dated January 1, 2016 is
November 23, 2020 being updated simultaneously to reflect the changes.
1. Attention of the Authorised Dealer (AD - Category I) 5. The directions contained in this circular have been
banks is invited to AP (DIR Series) Circular No. 23 dated issued under Section 10(4) and 11(2) of the Foreign
October 29, 2015, on the above issue advising that no Exchange Management Act, 1999 (42 of 1999) and are
fresh permissions/ renewal of permission shall be without prejudice to permissions / approvals, if any,
granted by the Reserve Bank/AD Category-I banks to required under any other law.
any foreign law firm for opening of Liaison Office in
India, till the policy is reviewed based on, among others, (Ravinder Singh Amar)
final disposal of the matter by the Hon’ble Supreme Chief General Manager
Court.
2. The Hon’ble Supreme Court has while disposing of the Maintenance of Escrow Account with a
case, held that advocates enrolled under the Advocates Scheduled Commercial Bank
Act, 1961 alone are entitled to practice law in India
and that foreign law firms/companies or foreign RBI/2020-21/68
lawyers cannot practice profession of law in India. As
November 17, 2020
such, foreign law firms/companies or foreign lawyers
or any other person resident outside India, are not
1. A reference is invited to the instructions issued by
permitted to establish any branch office, project office, Reserve Bank of India vide (a) DPSS.CO.PD.No.1164/
liaison office or other place of business in India for the 02.14.006/2017-18 dated October 11, 2017 (updated
purpose of practicing legal profession. Accordingly, AD
as on February 28, 2020) on ‘Issuance and Operation
Category – I banks are directed not to grant any
approval to any branch office, project office, liaison of Prepaid Payment Instruments (PPIs)’; and (b)
office or other place of business in India under FEMA DPSS.CO.PD.No.1810/02.14.008/2019-20 dated March
for the purpose of practicing legal profession in India. 17, 2020 on ‘Regulation of Payment Aggregators (PAs)
Further, they shall bring to the notice of the Reserve and Payment Gateways (PGs)’.

BANKING FINANCE | DECEMBER | 2020 | 53