According to an Economic Times report, the international bank accounts of more than two dozen high-net-worth individuals (HNIs) have been closed in the last two months. This action has been taken by two British banks, a Swiss bank and a major Emirates lender.

Bank accounts were opened under LRS

These rich people of India had opened bank accounts by transferring money abroad under the Liberalized Remittance Scheme (LRS) of RBI. Under this, a local person is allowed to invest up to $250,000 per year through stocks, properties etc.

Some large international banks require a minimum balance of at least $1 million. For high-net-worth individuals (HNIs) who do not have minimum balance in their accounts, banks suggest using the bank’s wealth management service to invest in stocks and loans. Since the bank makes profits from such investments, it wants to retain the customer even if the minimum balance in the account is low.

On closure of international bank accounts, Rajesh P Shah, partner at CA firm Jayantilal Thakkar & Co, said, “Parties receiving such emails should follow the rules by sending the money immediately.”

There is also a problem with the rules of the Reserve Bank

There is also a problem with the rules of the Reserve Bank. According to the rules of the Reserve Bank, the idle money lying in an international bank account should be invested or brought back within 180 days. A Singapore bank recently contacted some of its customers in India and asked them to invest money as idle money may be in violation of Indian regulations.

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Will Indian employees be affected?

Amidst the news of large-scale layoffs in Barclays Bank, the biggest question is whether it will affect the employees working in India? According to the news of Reuters, this retrenchment of Barclays Bank is going to affect mainly the employees working in the British bank office. The bank’s managers are busy in the review work and if the company goes ahead with its plan, the jobs of at least 1500 to 2000 employees may be in danger.

The target is to cut expenses by 1 billion pounds

Giving information on this matter, Barclays CEO CS Venkatakrishnan has said that the bank is planning to cut expenses by a total of billion pounds in the coming days. The impact of the cuts will be greatest on the employees working in Barclays Execution Services, known as BX.

According to Reuters news, Barclays is trying to cut down on long-term retail and investment expenses. For this, the option of layoff is also being adopted. Along with this, the bank has also cut the bonus of the employees. The bank wants to improve its cost to income ratio through this retrenchment and this is one of the big priorities of CEO CS Venkatakrishnan.

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