Section 5(2) in The Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2015
(2)A branch outside India of a bank incorporated or constituted in India may open, hold and maintain with a bank outside India, a Foreign Currency Account for the purpose of carrying on normal banking business outside India, subject to compliance with the directions or guidelines issued from time to time by the Reserve Bank, and the regulatory authority in the country where the branch is located.(B)Account by a company/ firm in the name of its office/branch/representative outside India. - A firm or a company or a body corporate registered or incorporated in India (hereinafter referred to as 'the Indian entity') may open, hold and maintain in the name of its office (trading or non-trading) or its branch set up outside India or its representative posted outside India, a foreign currency account with a bank outside India by making remittances from India for the purpose of normal business operations of the office/branch or representative;Provided that -(a)the overseas branch/office has been set up or representative is posted overseas for conducting normal business activities of the Indian entity;(b)the total remittances made under this sub-Regulation by the Indian entity, to all such accounts in an accounting year shall not exceed(i)15 per cent of the average annual sales/ income or turnover of the Indian entity during the last two financial years or up to 25 per cent of the net worth, whichever is higher, where the remittances are made to meet initial expenses of the branch or office or representative; and(ii)10 per cent of such average annual sales/ income or turnover during the last financial year where the remittances are made to meet recurring expenses of the branch or office or representative;(c)the overseas branch/office/representative shall not enter in any contract or agreement in contravention of the Act, Rules or Regulations made thereunder;(d)the account so opened, held or maintained shall be closed,(i)if the overseas branch/office is not set up within six months of opening the account, or(ii)within one month of closure of the overseas branch/ office, or(iii)where no representative is posted for six months,and the balance held in the account shall be repatriated to India;Provided further that the restriction contained in clause (b) of the first proviso shall not apply in a case where -
