Categories: Banking

RBI to introduce ‘Regulatory GAAR’ for round tripping

The Reserve Bank of India (RBI) has come up with a draft rule with modifications in the existing regulation related to foreign investment to discourage round-tripping. The central bank is looking to tweak the existing regulations and has come up with draft rules around round-tripping. Some of the largest Indian companies, startups and multinationals with an India presence have put their outbound investment, fundraising and restructuring plans on hold as the RBI looks to introduce fresh regulations around “round-tripping.”

Buy Prime Test Series for all Banking, SSC, Insurance & other exams

According to the draft rule, any investment made outside India is an entity, in turn, invests in India will be treated as round-tripping if the purpose is to escape tax. This is as the same definition and rationale used by the tax department under General Anti Avoidance Rule (GAAR) which companies have been complaining is quite broad in its scope.

Find More Banking News Here

Sumit Arora

As a team lead and current affairs writer at Adda247, I am responsible for researching and producing engaging, informative content designed to assist candidates in preparing for national and state-level competitive government exams. I specialize in crafting insightful articles that keep aspirants updated on the latest trends and developments in current affairs. With a strong emphasis on educational excellence, my goal is to equip readers with the knowledge and confidence needed to excel in their exams. Through well-researched and thoughtfully written content, I strive to guide and support candidates on their journey to success.

Recent Posts

Which Indian City is Known as the Footwear City?

India has many cities that are famous for their unique industries, and some of them…

3 hours ago

Which Desert is known as the Cold Desert?

Some deserts are extremely hot, but some remain cold throughout the year. These cold deserts…

4 hours ago

Top-10 News Media Companies in the World, Check the List

In today’s world, news media plays a very important role in sharing information quickly and…

6 hours ago

PNB Housing Finance Appoints Ajai Kumar Shukla as New MD & CEO

PNB Housing Finance has announced the appointment of Ajai Kumar Shukla as its new Managing…

7 hours ago

Department of Posts and BSE Sign MoU to Expand Mutual Fund Access Across India

In a major push towards deepening financial inclusion, the Department of Posts (DoP) and BSE,…

7 hours ago

Retail Inflation Rises Slightly to 0.71% in November 2025

India’s retail inflation, measured by the Consumer Price Index (CPI), increased modestly to 0.71% in…

7 hours ago