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> India even prohibits foreign long-term residents from maintaining an account in their country of nationality That is very, very excessive... Do you know what

> India even prohibits foreign long-term residents from maintaining an account in their country of nationality That is very, very excessive... Do you know what the official reasoning is for that?

b112 4y ago
Taxation(tracking) leaps to mind.
- searchableguy 4y ago
  Almost all banks are required to comply with tracking and sharing tax information due to OECD agreement at country level for tax reporting standardization. It's the default regardless of the country unless you are sanctioned. It's a factor but only a single one among multiple others.
zinekeller 4y ago
It's technically not a prohibition, but because the Reserve Bank of India regulates banks and requires a license to deal with anything banking, even if you already have an existing relationship (with other jurisdictions it only penalises marketing into their country which is understandable) with the account holder RBI could just sue us for operating without a licence, and RBI tends to just sue even if you think it's stupid. The resident is never penalised here (unless you have very large stash offshore), it's the bank. Also, since that some may just scratch their head, here is the relevant provision from MasterCard (https://www.mastercard.us/content/dam/public/mastercardcom/na/global-site/documents/mastercard-rules.pdf#_OPENTOPIC_TOC_PROCESSING_d118e83634 https://www.mastercard.us/content/dam/public/mastercardcom/n...).
sidewndr46 4y ago
Just google "India" and "black money". I'm not from there, but it feels like the boogeyman of Indian politics. It seems the government is able to perpetuate some idea that India has simply unimaginable wealth, but that it was all stolen by a select few and if only they could get it back everything would be OK.
deleted 4y ago
[deleted]
searchableguy 4y ago
It is not prohibited for an individual to maintain a foreign bank account in India but capital controls (FEMA) applies and banks providing services to Indian residents might need to comply with regulatory framework. It's the same in most countries. The regulatory burden may be different but banking presence is required in the country if you are serving domestic market at scale. Indian residents can open HSBC expat account domiciled on the jersey island as an example.

> India even prohibits foreign long-term residents from maintaining an account in their country of nationality That is very, very excessive... Do you know what the official reasoning is for that?

b112 4y ago

Taxation(tracking) leaps to mind.

searchableguy 4y ago
Almost all banks are required to comply with tracking and sharing tax information due to OECD agreement at country level for tax reporting standardization. It's the default regardless of the country unless you are sanctioned. It's a factor but only a single one among multiple others.

zinekeller 4y ago

It's technically not a prohibition, but because the Reserve Bank of India regulates banks and requires a license to deal with anything banking, even if you already have an existing relationship (with other jurisdictions it only penalises marketing into their country which is understandable) with the account holder RBI could just sue us for operating without a licence, and RBI tends to just sue even if you think it's stupid. The resident is never penalised here (unless you have very large stash offshore), it's the bank. Also, since that some may just scratch their head, here is the relevant provision from MasterCard (https://www.mastercard.us/content/dam/public/mastercardcom/na/global-site/documents/mastercard-rules.pdf#_OPENTOPIC_TOC_PROCESSING_d118e83634 https://www.mastercard.us/content/dam/public/mastercardcom/n...).

sidewndr46 4y ago

Just google "India" and "black money". I'm not from there, but it feels like the boogeyman of Indian politics. It seems the government is able to perpetuate some idea that India has simply unimaginable wealth, but that it was all stolen by a select few and if only they could get it back everything would be OK.

deleted 4y ago

[deleted]

searchableguy 4y ago

It is not prohibited for an individual to maintain a foreign bank account in India but capital controls (FEMA) applies and banks providing services to Indian residents might need to comply with regulatory framework. It's the same in most countries. The regulatory burden may be different but banking presence is required in the country if you are serving domestic market at scale. Indian residents can open HSBC expat account domiciled on the jersey island as an example.