Chapter 3 – Policy Implications for Gaelic - University of Edinburgh

The University of Edinburgh
The University Court
D10
2 July 2012
Indian Office – Banking arrangements
Brief description of the paper, including statement of relevance to the University’s strategic plans and
priorities where relevant
The India Office, University of Edinburgh is a Liaison Office under Reserve Bank of India guidelines.
Liaison Offices may open and operate local bank account/s to support activities and personnel locally.
Two accounts were opened with HDFC Bank, with permission of the University Court - the first to pay
the salary of the Director - India Office, operated by Director - International Office; the second to pay
out running expenses of the India Office and salaries of other team members, operated by the Director -
India Office.
Netbanking (operating) access is required for both these accounts to ensure smooth functioning of the
office going forward, for which University Court permission is requested via this submission. The
initial account opening process only allows for net banking (viewing) access.
Access for HDFC Account No. 05012560004175 for Amrita Sadarangani, Director - India Office
The India Liaison Office under the Reserve Bank of India (RBI) regulations, is required to make Tax
Deducted at Source payments as part of payments to vendors – organisations with whom we have a
contract for services provided and also with individuals from whom we take service (above a certain
amount). This TDS can only be paid online via net banking (operating) access from our HDFC expense
account (ending 4175), before the 7 th of every month in which the bill is received. If not paid on time, a
late payment charge is levied for the same. These payments are currently being managed via our
contracted Chartered Accountant (J. K. Doshi)'s client escrow account, but this is not a satisfactory
long-term solution and will attract further investigation by the RBI.
The net banking (operating) access will work on the same terms and conditions as paper access to the
account with a similar cap on the transaction amount per day.
Access for HDFC Account No/ 05012560004182 for Alan Mackay, Director - International
Office
This account was set up to transfer the salary for the Director – India Liaison Office from the University
to India for payment to the Director's individual account as per RBI guidelines.
The Director – International Office requires operating access to this account, online, to enable the
release of the Director of India Office’s salary on a monthly basis, which is currently being processed
via signed cheques being couriered to India. These are blank cheques since the amount fluctuates
every month based on GBP / INR fluctuations which are quite severe and this process therefore carries
risks. A more efficient and secure process would be to have the transfer take place via online transfer,
and net banking (operating) access will facilitate this.
Action requested
The University Court is required to approve the two attached resolutions to enable HDFC Bank to grant
the Director - International Office and Director - India Office net banking (operating) access to the
respective bank accounts.