At the time of closure of a Liaison Office (LO) / Branch Office (BO), transfer of assets of such LO/BO to their subsidiaries or other LO/BO or to any other entity required the prior  approval of the RBI.

To simplify the process of closure of LO/BO/ Project office (PO) and transfer of assets, RBI has  delegated the power relating to transfer of assets of LO/BO/PO to AD Category-I banks subject to  the conditions specified in relevant circulars. The proposals will be considered only from the LO/BO/PO that complies with   the operational  guidelines in relation to setting up of LO/BO/PO stipulated by the RBI. Further, the assets should  have been acquired by the LO/BO/PO from inward remittances and no intangible assets such as good  will, pre-operative expenses should be included and no revenue expenses such as lease hold  improvements incurred by the LO/BO be capitalised and transferred. A certificate from the statutory  auditor providing various details of the assets being transferred is also to be submitted.