RBI fines 4 PSUs for late reporting of overseas investments
₹2,000 crore on ONGC Videsh Ltd (OVL), Indian Oil Corp. Ltd, GAIL (India) Ltd, and Oil India Ltd for delayed reporting of their overseas investments, two people familiar with the development said. The move may impact the overseas work commitments of these four state-run energy majors, prompting efforts by them to secure an extension from RBI, which has imposed a late submission fee of ₹500 crore each on the four firms.
State Bank of India (SBI) is the authorized dealer (AD) bank for these public sector undertakings’ (PSUs’) foreign transactions. It is the work of the AD bank to report and reconcile their overseas direct investments (ODIs) within the requisite timelines. The oil ministry, the nodal ministry for these PSUs, believes the responsibility for reporting these transactions lies with SBI, not the PSUs.
“As per RBI notification dated 22 August 2022, restrictions have been placed on further remittance or transfer, wherein authorized dealer bank shall not facilitate any outward remittance/financial commitment by a person residing in India towards a foreign entity until the delay in reporting is regularized," said a senior Indian Oil Corp. executive, on condition of anonymity. “We have sought time from RBI to avoid any disruption in operations and for the smooth functioning of overseas subsidiaries.
Further, we are in the process of reconciliation of the late submission fee along with SBI ODI (overseas direct investment) Cell." A second person also said efforts are being made to resolve the issue. “It shall happen soon," the person said, on condition of anonymity. According to RBI’s Foreign Exchange Management (Overseas Investment) Regulations, 2022, those failing to submit investment evidence within the stipulated
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