REGISTRATION OF INTER-GOVERNMENTAL AGREEMENT (IGA) WITH UNITED STATES OF AMERICA (US) UNDER FOREIGN ACCOUNTS TAX COMPLIANCE ACT (FATCA)
CIRCULAR DBR.AML.NO.11254/14.07.018/2014-15, DATED 28-1-2015
Please refer to our circular DBR.AML.No.9644/14.07.018/2014-15 dated December 30, 2014, on the captioned subject.
2. In partial modification to the above circular, it is clarified that those RRBs which do not have more than $175 million in assets on its balance sheet, and the RRB and any related entities, taken together, do not have more than $500 million in total assets on their consolidated or combined balance sheet are treated as Local Banks, i.e. ‘deemed compliant FFIs’ within the meaning of the Agreement provided that the asset test in paragraph 4 of III.B of Annex II of IGA. Such RRBs, therefore, need not register with United States – Internal Revenue Service (US IRS).
3. RRBs, which have more than $175 million in assets on its balance sheet, and the RRB and any related entities, taken together, is more than $500 million in total assets on their consolidated or combined balance sheet and are authorised to open accounts or accept deposits from NRIs, however, are required to register with US IRS, obtain Global Intermediary Identification Number (GIIN) and comply with the requirements of FATCA.
4. Accordingly, RRBs may take action appropriately and forward the GIIN number so obtained to the Reserve Bank immediately.
5. Kindly acknowledge receipt of this circular.