Reporting Financial Institution

In India, the reporting obligation applies to entities that may be legal persons or legal arrangements, such as corporations, trusts, or partnerships. To determine whether an entity has a potential reporting obligation, it's necessary to ascertain whether the entity qualifies as a Reporting Financial Institution (RFI). RFIs are mandated to maintain and report specific information for each "Reportable Account." The definition of RFI is outlined in Rule 114F (7) and includes the following criteria:

• Financial Institution Resident in India: This encompasses financial institutions that are resident in India. However, branches of such institutions located outside India are excluded from this definition.
• Branches of Financial Institutions Outside India: Any branch of a financial institution (excluding non-reporting financial institutions) that is not resident in India but has a branch located in India falls under the RFI definition.

It's important to note that the term "Financial Institution" excludes non-reporting financial institutions. By defining RFIs in this manner, Indian regulations ensure that entities meeting these criteria are obligated to maintain and report the required information regarding Reportable Accounts.