Find answers to the questions our customers most often ask. If you can’t find the information you need, please check the relevant section of our website, or call Customer Service on 0800 532 532 .
Contact centre is now open 24/7.
1. Who regulates the State Bank of India?
State Bank of India (SBI) is authorized and regulated by Reserve Bank of India and Prudential Regulation Authority. Subject to regulation by the Financial Conduct Authority (FCA) and limited regulation by Prudential Regulation Authority. SBI is entered on the Financial Services Register and its register number is 139156. SBI (UK) is registered in England and Wales (registered no: FC 004460, branch no: BR000696) as an overseas company, with a registered office at 15-17 King Street, London EC2V 8EA. For more details, please visit our Customer Care section.
2. Is SBI part of the Financial Services Compensation Scheme?
Yes, we’re covered by the Financial Services Compensation Scheme (FSCS), which can pay compensation to depositors if a bank is unable to meet its financial obligations. Most depositors - including most individuals and small businesses - are covered by the scheme.
An eligible depositor may claim up to £85,000 in deposits under the scheme. For joint accounts, each account holder is treated as having a claim in respect of their share. So, for a joint account held by two eligible depositors, the maximum amount that could be claimed would be £85,000 each (totalling £170,000). The £85,000 limit relates to the combined amount in all the eligible depositor's accounts with State Bank of India UK Offices, including their share of any joint account, and not to each separate account.
For more information about the scheme, including amounts covered and eligibility to claim, please ask at your local branch, visit the FSCS website or call 0800 678 1100.
3. Can I open an NRI account in India from the UK?
4. Can I post queries about my Internet banking transactions on this site?
No. To ask a question, please log in to SBI (UK) Internet Banking and contact us. Alternatively, drop in to your local branch.
5. I’m not an SBI customer. Can I still use your money-transfer services to move funds from a UK bank account to an account in India?
Yes. Please visit our Money Transfer section to find out how. We would suggest, however, that you open an account with one of our UK branches to benefit from current exchange rates and ensure your destination account is credited quickly.
6. Can a draft in Indian Rupees be issued by your branches in the UK?
We can issue demand drafts in Indian Rupees to be payable at branches in India. However, our money-transfer service is a quicker, safer way to send payments to India.
7. What are the charges for drafts in Rupees?
Please visit our Charges page for details of Rupee-draft charges and other charges for sending money to Bangladesh, Nepal and Sri Lanka.
8. Where can I download SBI’s account-opening forms?
9. How to change communication address to my personal / business account?
- Visit one of our branches by providing a request letter along with an original photo identification (passport, full driving license) and original utility bill or bank statement. Please ensure that request letter is signed by all account holders and the address proof is not more than 3 months old.
- If a visit to a branch cannot be done, complete the Change of Circumstances Form and send it by post with the copy of your latest address proof. The full list of acceptable documentation can be found in our website at http://www.sbiuk.com/footer/services/how-to-open-an-account. Internet copies are not accepted. The branch will then contact you for conducting identification checks by asking security questions. The request will only be processed on successful completion of this identity checks.
10. When is the Customer Services helpline open?
Call our call centre on 0800 532 532 between Monday to Wednesday and Friday 9:00am to 6:00pm, Thursday 9:00am to 5:00pm and Saturday 9:00am to 3:00pm
11. Can a customer trade shares via the SBI (UK) website either in India or in the UK using the SBI UK's website?
No, we don't offer this service. However, our NRI branch in Mumbai will be pleased to open a ‘‘Demat’' (dematerialized) account for you, which will enable you to trade shares. You can email them at email@example.com.
12. How long does a faster payment take to be sent ?
Payments made on weekdays between 06:30 AM – 06:30 PM will be credited to the payees account within 2 hours, payments made after 06:30 PM on a weekday will be credited to the payees account on the next business day. Payments made on the weekend will be credited to the payees account on the next business day.
13. Can I make payments to countries outside the UK ?
Yes, however, it will considered as cross-border payments and will not fall under the ambit of Faster Payments, which is local to UK transfers only.
1. How do I open a personal/ business UK Account?
Personal accounts – You can open an account in person at one of our branches, by writing to one of our Branches. Please visit our website at www.sbiuk.com for more details.
Business accounts - You can open an account in person at one of our branches.
2. What are the documents required to open a personal/ business UK Account?
For personal customers who are interested in opening an account in our branches or by post, please visit our website for details of the documents required to open an account.
3. How to open a ‘Term Deposit Account’ in the UK?
To open a term deposit you need to transfer the amount in your SBI Savings or Current account and submit a request to your local branch. To know more about the rates on our term deposits or how to open a Current or Savings account refer to personal section in our website.
4. My money is not reflecting into my SBI UK account that was transferred from another UK Account and vice versa ?
Within UK funds transfer can take between 2 hours to 24 hours, and will depend on the clearing bank.
As soon as the funds will reach your SBI UK account, it will be reflecting in your balance, however if it is taking longer, please check with your Bank from where the funds have been transferred.
To check your SBI UK account log in to your internal banking, call our call centre or get in touch with your local branch.
5. Can I buy and sell Indian Rupee notes at SBI (UK) branches?
No, but you can transfer money to India in Rupees, GBP, USD or Euros.
6. Can I open/close my SBI (UK) account from outside the UK?
Yes, you can open or close an SBI (UK) account from outside the UK. Please note, unfortunately, at present the State Bank of India (UK) does not have the facility to accommodate applications from US Persons (US Citizen or US residents)
- To open an account, please see how to open an account.
- To close your account, by posting us a letter to the branch signed by all the account holders together with a self-attested copy of your Identification proof. Please visit our General Terms and Conditions and read ‘Closing your Account’ (section 15).
7. How to add my partner to my existing SBI Account?
For adding your partner to your existing account you need to submit a letter confirming that you would like to add an additional applicant. An account opening form should be filled in and signed by the new applicant and also provide their original Identification and address proof which will be attested by the branch. If applying outside UK, please check our website www.sbiuk.com.
Online Accounts FAQs
1. Am I eligible for a savings or a fixed deposit account?
This account is available to an individual, aged 18 years or over who is ordinarily resident in the UK for tax purposes and has a permanent UK address. Also you must have a personal UK bank or building society account that allows transfers to be made to this account.
2. How do you verify my personal details?
We verify your identity and address through an online system, immediately after you submit your application. In order to be able to proceed with your application, you must have either (a) UK passport or (b) UK driving licence. For most of the customers we will be able to verify your identity and address online using different sources, including searches using public information bodies. If we are unable to verify your identity and address using our online system, we will not be able to open an account for you online. In such cases, we request you to come to the branch with your identity and address proof. The full list of acceptable documentation can be found in our website at http://www.sbiuk.com/footer/services/how-to-open-an-account
3. What if I do not have the required documents to apply for a State Bank of India online product?
You must have either (a) UK Passport or (b) UK driving licence. If you do not have either of these, you can visit one of the State Bank of India branches or contact us at 0800 532 532 (9 AM – 6 PM on Monday to Friday. Please be aware that calls may be recorded or monitored for training and quality purposes.
4. For how many products listed online, can I apply?
You will be able to apply for only product at the time of application. If you apply for an Instant Access savings account only during your application, we will only open an instant access savings account for you. However, please note that if you apply for a State Bank of India Fixed Deposit Account, we will also open an Instant Access savings account for you automatically.
5. Is it mandatory for me to open an Instant Access Savings Account if I wish to open a Fixed Deposit Account?
Yes, it is mandatory to open an Instant Access Savings Account to open a Fixed Deposit Account. If you apply for a Fixed Deposit Account only, we will automatically open an Instant Access Savings Account for you.
6. Do you offer the ability to apply as a joint account holder?
Yes, you can either apply for a sole account or a joint account. Please be aware however that should you wish to have a debit card for your account and indicate so at the time of the application, only the primary applicant will receive a debit card.
7. What is the maximum and minimum I can invest?
The minimum and maximum amounts are mentioned below:
Type of Account
Online Instant Access Savings Account
Online High-Return Fixed deposit
8. How can I apply for the savings & deposit accounts available through the branch?
Please bring your proof of identity and address to one of our branches and the branch staff will be happy to assist you. The full list of acceptable documentation can be found in our website at http://www.sbiuk.com/footer/services/how-to-open-an-account
On our website, www.sbiuk.com you can also get details on all the products available through the branches.
9. What happens after I apply online?
Once you've submitted an application online, you’ll receive a confirmation immediately and also an email within a couple of hours. This will give you information about the next steps including on how to transfer money to your account and start saving with us. In some cases we may request additional information to help us verify your address or identity.
Within a few days of your account being opened you’ll receive a welcome letter with your account details and also your login details. With this information, you will be able to view and manage your account online 24/7.
10. How can I transfer the money to my account and start saving?
If you wish to start earning interest straight away (once the money is deposited into the account), simply contact your UK bank or building society to transfer the deposit amount to the State Bank of India account that will be sent to you via email from us.
Important points to consider:
- Please remember to enter your unique reference number at the time of making the transfer.
- The first payment into the account must be done from a UK Bank or Building society account held in the applicant's name and the amount should match with what was specified at the time of application.
Alternatively, we will send you a welcome pack within a few days of opening your account. This contains your new account number and sort code. Once you receive it, you can immediately transfer the money your account and start saving!
In order to transfer the money, simply contact your UK bank or building society with an instruction to transfer the deposit amount to your new State Bank of India account. When doing so, you will be required to provide your account number and sort code. Remember, your welcome pack contains this information.
If you complete the application and have trouble transferring funds into your account, please contact us at 0800 532 532 (9 AM to 6 PM, Monday to Friday).
Please be aware that calls may be recorded or monitored for training and quality purposes.
11. What happens after my account has been opened and the funds have been received?
Once your account is opened your account details along with the login details will be dispatched to you within a few days and you'll be able to view and manage your account online 24/7.
12. How often will I receive a statement?
For all types of accounts, you will receive account statements annually. This will be usually in the month of April.
If you prefer to receive the statement on a different frequency, please contact any of our branches or call centre.
13. What if I withdraw the money from my fixed deposit account before the completion of the term?
You cannot close fixed deposits prematurely; if you think that you might need access to your money, an Online Instant Access savings account may be more suitable for your requirements.
14. Can I open an Online instant access savings account at the time of application and later open a Fixed deposit?
Yes, you can open a fixed deposit by visiting a branch or sending an application form to your branch.
15. What happens to my account when my fixed deposit product matures?
If you do not contact us or provide us with instructions prior to maturity, we will transfer the funds into your instant access savings account.
16. How do I receive my money once my fixed deposit product matures?
We will send funds electronically to your Instant access savings account held with us.
17. How do I access my online savings & deposit accounts?
You can access your account online using the Internet Banking facility or by visiting your branch or by calling the customer services at 0800 532 532 (9 AM to 6 PM, Monday to Friday). Please be aware that calls may be recorded or monitored for training and quality purposes.
18. Can I close my account?
Yes. You may close your account at any time and will need to provide us with written notice either in person at any of Branches or in writing to any of our Branches. If you request the closure in person, we will require you to also provide current valid proof of identification and proof of address (the full list of acceptable documentation can be found in our website at http://www.sbiuk.com/footer/services/how-to-open-an-account) and a signed and written instruction detailing your cancellation request with full details of where you wish the account proceeds to be transferred.
For any written requests we will require an attested copy of the current proof of identification and valid original proof of address document (or attested copy) as detailed within our acceptable list (see the link above) and an original written signed cancellation request with full details of where you wish the account proceeds to be transferred.
The closure proceeds will only be sent to an account in your name only. Please ensure that you provide the account number for transferring money which is in your name.
19. How do I change my personal details (e.g. change of address or change of name)?
These can be done in person at an SBI UK Branch or by completing the Change of Circumstances Form and sending it to an SBI UK Branch. In order to make these changes we will require current valid proof of identification document (with the new name) and proof of address (with the new address). The full list of acceptable documentation can be found in our website at http://www.sbiuk.com/footer/services/how-to-open-an-account. Internet copies are not accepted.
20. What is the maximum amount I can transfer daily?
You can transfer up to £15,000 online through your account each day. In the event that you wish to transfer larger amounts on a single day you can either visit an SBI UK Branch or write to an SBI UK Branch to request this.
21. Can I request a transfer of money at your Branch?
Yes. Although it is likely to be more convenient to transfer up to £15,000 daily online through your account, you can request a transfer either in person at our Branches or by writing to one of our Branches. If you request a money transfer in person, we will require you to provide the current and valid proof of identification and proof of address (the full list of acceptable documentation can be found in our website at http://www.sbiuk.com/footer/services/how-to-open-an-account) plus a signed and written instruction detailing your transfer request with full details of where you wish the account proceeds to be transferred.
For any written requests we will require an attested copy of the current proof of identification and valid original proof of address document (or attested copy) as detailed within our acceptable list (see the link above) and an original written signed transfer request, with complete beneficiary details ( complete name, address, bank name, address and account number) where you wish the account proceeds to be transferred
If you would like to transfer money to the UK Bank account, which was specified in the application (and from which the first payment to SBI UK account was made by you), we will require a self-attested copy of the current proof of identification and valid original proof of address document (or self-attested copy) as detailed within our acceptable list (see the link above) and an original written signed transfer request, with complete beneficiary details (complete name, address, bank name, address and account number).
22. Who can attest documents?
The documents can be attested by a Banker, Solicitor or Public notary.
23. How is interest calculated?
Interest is accrued daily, and compounded based on the interest payment available to you.
24. Can I open an account if I live outside the UK?
No, our accounts are only available to the residents of the UK who are ordinarily resident in the UK for tax purposes.
25. Will my State Bank of India product be protected?
State Bank of India is regulated by the FSA and is a member of the Financial Services Compensation Scheme established under the Financial Services and Markets Act 2000. The Financial Services Compensation Scheme protects deposits of eligible depositors held with our UK branches. Payments under this scheme are limited to £85,000 of your total deposits with us in UK. In practice, this means that each eligible depositor will be compensated up to a maximum of £85,000 of their total deposits.
1. Who is an NRI?
Section 2(w) of FEMA, 1999 defines a 'person resident outside India' as a person who is not resident in India.
An individual shall be deemed to be a non-resident in following cases:
- When he stays in India for less than or upto 182 days during the preceding financial year. The period of stay may not be 'continuous' and the same shall be calculated by adding up the days of his stay in India during that financial year. Thus a student who goes for studies abroad and his stay in India during a financial year is less than 182 days, then he shall be treated as non-resident Indian for the next financial year. Similarly, tourists and all others who have gone out of India without the purpose of taking up employment or starting any business abroad, shall be treated as non-residents if, their stay in India during the preceding financial year was less than or upto 182 days.
When he goes or stays outside India for any of the following purposes:
- For or on taking up employment outside India, or
- For carrying on outside India a business or vocation outside India, or
- For any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period.
In such cases, the person becomes a 'non-resident' irrespective of the period of his stay in India. It is pertinent to note here that while the period of his stay in India shall be reckoned for the preceding financial year, the event of going or staying abroad for any of the aforesaid purposes shall be reckoned for the current financial year.
2. How to open an NRI account?
Open an account with SBI UK for identification and servicing your account in India. Submit your NRI Account Opening form at a Branch along with an SBI UK Account Opening form with all requisite documents.
3. What are the kinds of bank accounts an NRI can hold in India?
As per FEMA Notification No.5/2000-RB, dated 3rd May 2000, an NRI can have a 'Rupee Account' and/or a 'Foreign Currency Account' in India as described below:
- NRE or NRO Current / Savings Banks / Recurring Deposit / Fixed Deposits accounts in Indian Rupees.
- FCNR (B) Term Deposits in USD, EURO, GBP, CAD, JPY and AUD.
4. What is the difference between NRE and NRO accounts?
- The interest income earned on NRO attracts income tax deduction at source in India, whereas interest income in NRE is tax free in India.
- Balances held in NRE accounts can be fully repatriated abroad, whereas funds in NRO account are partially repatriable (up to USD 1 million per financial year), subject to payment of taxes.
- Funds remitted from abroad or local funds which can otherwise be remitted abroad to the account holder can be credited to NRE accounts. Funds which do not qualify, under the Exchange Control regulations, for remittance outside India are required to be credited to NRO accounts.
5. Can a Non-Resident Indian (NRI) pensioner submit his life certificate from the UK to India?
Yes, if pension paying bank is SBI and pensioner is having a banking relationship with us, we can forward request of visiting pensioner to SBI India.
6. Can I take loans against my NRE Fixed Deposits / FCNR deposits?
Yes, Rupees loans are available only in India. Loan in UK is available against FCNR for business purposes only.
7. Can I open a Non-Resident Indian (NRI) account in India whilst I am in the UK?
Yes, SBI UK Branches facilitate account opening for Non-resident Indians.
You can apply by post after getting papers attested by notary or high commission.
We also offer facility to fill in online NRI Account form for more information please visit www.onlinesbi.com/nri
8. How I can use Internet banking for my NRI Accounts?
9. I have not received a Debit Card for my NRI account?
10. I have not received my cheque book for my NRI account?
Put a simple letter to SBI India where account is maintained for providing cheque book. Cheque book will come to registered address with SBI India from vendor.
11. What documents do I need to open a NRI account?
12. I need Term Deposit Details for my SBI NRI account?
Request the SBI Branch in India for detailed CIF wise statement or you can check through internet banking (view rights only needed).
13. I need a loan to purchase a property in India?
NRI home loan in INR in available from SBI in India for construction, renovation or purchase of house / flat. SBI UK facilitate NRI home loan for its account holders. For more details visit www.onlinesbi.com/nri or send an email to firstname.lastname@example.org or contact a Branch manager.
14. Are funds in NRE / NRO / FCNR (B) accounts repatriable?
Funds in NRE / FCNR (B) deposits accounts are fully repatriable, whereas funds from NRO account are partially repatriable (up to USD 1 million per financial year)
15. Can fixed deposits be closed prematurely?
For NRE Term Deposits, premature withdrawals permitted (conditional):
On pre-mature withdrawal of the Deposit (after completion of 1 year), interest will be calculated at applicable rate for the period the Deposit has actually remained with the Bank less applicable penalty as under:-
|NRE term deposits opened
|Before 1st January, 2012
|From 1st January, 2012
* The interest paid shall be 0.50% below the rate applicable for the period deposit has remained with the Bank or 0.50% below the contracted rate, whichever is lower.
- No interest is payable, if the deposit is withdrawn before one year.
For FCNR (B) fixed deposits, no interest is payable if the deposit is not kept with the bank for a minimum period of one year. If the deposit is kept for over one year, interest will be paid at the rate applicable for the period for which it has run less a penalty of 1%.
16. How to check the status of my NRO / NRE / FCNR (B) fixed deposit?
If you want to know status of NRO / NRE / FCNR (B) fixed deposit, you can either contact your home branch for the details or you can check it through your internet banking account.
Remittance to India
1. My remittance has been rejected via online banking.
Branch where your account is being maintained will contact you for correct data for processing the remittance or give a call to call centre and advice the rejection.
2. A different exchange rate was provided to me that the rate applied when the money reached India.
Exchange rate shown at the time of execution of the transaction is valid. However, if you think there is any difference, please get in touch with our call centre at 0800 532 532 between 9 am to 6 pm Monday to Friday.
3. Is it possible to transfer my funds from a bank in the UK to my account in a bank (other than SBI), in India using the SBI remittance facilities without having an account with SBI either in the UK or in India?
Yes, you can do that by registering for online remittance.com of global link services providing SBI express of SBI India. The exchange rate available at the time of processing of transanction will be applicable.
4. What are the charges of remitting money from ?
Debit card queries
1. Can I use my state bank of India UK debit card for free, or will I be charged?
You can use your State Bank of India UK Debit card free of charge in all UK bank ATMs. However, you might incur a usage charge at non-bank ATMs.
2. Can I use my State Bank of India UK debit card in India?
Yes, you can use your debit card for free at over 40,000* State Bank of India-group ATMs across India.
3. Do I need to tell you when I am traveling abroad?
Yes, since your account is monitored for unusual activity, please tell us when you're traveling abroad so we know when to expect international card use - otherwise your debit card could be blocked due to fraud prevention. Please note, we automatically block accounts for unusual foreign transactions, so let us know before you travel, and also when you are back in the UK. It will require approximately 4 working days to be activated, hence please contact our customer service team 5 working days before and it will reduce the chance of us declining a holiday transaction on your debit card. Simply call Customer Services on 0800 532 532 if calling from UK, and 00 44 207 454 4338 from outside UK. If you have a joint current account you will both need to notify us for each card.
4. Can I use my State Bank of India UK debit card for telephone transaction or mail order?
No, unfortunately, you cannot use your State Bank of India UK debit card for telephone or mail order transactions (i.e., transactions where only the card number is written with/without a signed authorisation). You can only use your State Bank of India UK debit card where it can be physically swiped, or through merchant sites that mandate Mastercard SecureCode.
5.How do I register for MasterCard Secure Code?
You can register your card for MasterCard Secure Code, while performing the first online transaction with your SBI UK debit card.
6. I’ve received my debit card what is the next step?
Please call our call centre on 0800 532 532 , Monday to Friday 9am-6pm, to confirm the safe receipt of your debit card and request for your PIN. The PIN will be sent to you within 3-5 working days from the time you have called us. On receipt of your PIN, please use your debit card first in an ATM in UK to activate your card. You can do so by either withdrawing cash, balance enquiry or by changing your PIN .
7. What is the daily limit for using SBI UK debit card?
Withdraw up to £ 300 / day from any ATM and up to £5000 a day for point of sale and online transactions as long as you have sufficient funds in your account.
8. How do I change my PIN?
You can change the PIN at any ATM machine in UK, once you’ve entered your existing PIN.
9. My card has been lost / stolen. What should I do?
If your card is lost or stolen, contact us immediately on 0800 532 532. If you’re calling outside the UK, then please contact +44 207 454 4338.
Please ensure to keep the account number in hand for better service. You’ll also get replacement debit cards upon request to UK contact centre on 0800 532 532 and it should reach you in 7 to 10 working days. The new card we send you will have a different number. So if you’ve registered your old card’s details anywhere – eg with online shopping sites or for regular payments such as your gym memberships or insurance premiums – please contact the companies and give them your new card details.
10. Will I get charged for using my debit card at ATM?
IN UK: Free cash withdrawal while using any of the High Street Bank ATM which has MasterCard logo on it.
SBI ATM – India
Free cash withdrawal and better conversion rate while using SBI ATM in India.
In case if you see any charges for using SBI ATM in India, these charges will be reversed back into your account.
Charges apply for all other ATM / POS transactions outside UK.
11. What time period is my daily ATM limit effective for ?
The daily ATM limit for our UK debit card holders will start from 17:30 GMT to 17:30 GMT of the following day, this means that the limit will lapse over two days. Please be aware of this as if you look to withdraw more than £300 over the course of two days but within 24 hours, then it will forbid from doing so.
Contactless card FAQ's
1. Why contactless payment failed but the same worked when used as a CHIP and PIN?
Continuous payments via contactless mode at POS are limited up to £100; thereafter a payment needs to be made using CHIP and PIN transaction. This precaution confirms that the user is in the rightful user, limiting any potential fraud should the card be lost or stolen.
2. If I touch the reader twice will my payment be duplicated?
3. Will I get charged for making contactless transactions?
There is no charge for making contactless transactions within UK. You will be charged if contactless transactions are made outside UK at per the terms & conditions.
4. Can I use my card to touch in London buses / train stations?
Yes, our contactless debit cards can be used on London buses/ train stations.
Continuous payments via contactless mode at POS are limited up to £100 thereafter a payment needs to be made using CHIP and PIN transaction. This precaution confirms that the user is in the rightful user, limiting any potential fraud should the card be lost or stolen.
5. Can I make cashback transactions using contactless?
Our debit card does not support cashback facility at POS (point of sales) terminal.
6. Will I get a text message for making contactless transactions?
No. Only if there is a debit of more than GBP 50 in one transaction you will get a text message. Using contactless facility you can pay only upto GBP 30 per transaction.
7. I already hold a SBI debit card, can I still request for contactless debit card? Will I get charged for requesting new card?
There is no charge for requesting contactless debit card. Please call our call centre on 0800 532 532 (Monday to Friday between 9 am to 6 pm).
8. What if I'm not interested in making contactless transactions?
You can still use your card in the normal way using the CHIP and PIN.
9. How to contact you about lost and stolen card?
If your card has been lost or stolen, contact our call centre on 0800 532 532. If you’re calling outside the UK, then please contact +44 207 454 4338.
Online banking queries
1. If you cannot access your Internet banking services, or have forgotten your User Identification /passwords or for any other internet banking query
Please visit the section “trouble logging in” on the Personal Banking Login screen for more information. Or call us on 0800 532 532 (Monday to Friday between 9 am to 6 pm).
Tax Regulations FAQs
1. What are the Tax Regulations? And why have they been introduced?
For the purposes of this document, the Tax Regulations refer to the UK regulations created to enable automatic exchange of information and include:
- Foreign Account Tax Compliance Act ("FATCA");
- the Agreements to Improve International Tax Compliance entered into between the UK, the Crown Dependencies and the Overseas Territories ("CDOT"); and
- the OECD Common Reporting Standard for Automatic Exchange of Financial Account Information ("CRS").
The aim of these tax regulations is to combat tax evasion.
Further information can be found on the HMRC website: https://www.gov.uk/government/publications/exchange-of-information-account-holders
2. What are FATCA, CDOT and CRS?
FATCA was implemented on 1 July 2014 with the principle objective to ensure income and assets held by United States (US) persons are reported to the IRS (Internal Revenue Services, the US Tax Authority). It puts obligations on Financial Institutions, such as The State Bank of India, to identify and report certain information to HM Revenue and Customs ("HMRC") on account holders who are US persons.
CDOT was also implemented on 1 July 2014 and the rules are very similar to FATCA. Under CDOT, State Bank of India will need to identify account holders who are residents of the Crown Dependencies (Guernsey, Isle of Man and Jersey) and Gibraltar, and Overseas Territories. State Bank of India will be required to report certain information on any of these account holders to HMRC.
CRS is also similar to FATCA but will be implemented from 1 January 2016. CRS requires State Bank of India to report certain information on tax residents of a larger number of countries to HMRC. CRS aims to standardise an approach to reporting information on financial accounts and to date 74 countries have agreed to report information on this basis with many more countries expected to follow.
3. What is the impact of the Tax Regulations?
The Tax Regulations require UK banks and other Financial Institutions to annually report information on financial accounts held by US persons for FATCA, Crown Dependencies or overseas territory persons for CDOT and tax residents from a large number of countries for CRS.
4. Are all UK financial institutions required to comply with the Tax Regulations?
Yes, all UK financial institutions need to comply with the UK law implementing the different agreements. To be compliant all UK banks must adhere to the requirements of the Intergovernmental Agreements which include items such as the collection of additional Customer documentation.
5. I am a UK tax resident, do the Tax Regulations apply to me?
The tax regulations are primarily applicable to individuals and business account holders who have tax liabilities in countries signed up to adopt CRS. However, we are required to obtain confirmation of your tax residency to establish whether we are obliged to report details to HMRC.
6. What is a tax residency?
Tax residency is the county in which you are liable to pay Income and/ or Capital Gains Tax. You may have more than one country which you are liable to pay tax. If so, you would need to provide information on both countries.
7. What should I do if I am unsure of what my classification is?
If you are unsure of your classification under the relevant agreements you should seek guidance from your tax advisor.
8. How will my information be used by State Bank of India?
We may be required to report certain account information to HMRC to comply with the Tax Regulations. We strictly adhere to local data privacy laws and take customer data protection very seriously. We share this information with the authorities because it is a legal requirement. Please refer to the terms and conditions (www.sbiuk.co.uk) for additional details.
9. How will the Tax Regulations impact my existing accounts with you?
We are required to review existing accounts to ensure we have sufficient information for State Bank of India to classify you for the purposes of the tax regulations. If we have adequate information supporting your status there will be no request for further information. If we require additional information, you may receive correspondence asking you to provide documentation to allow us to determine your status.
10. What if I make changes to my account which introduces a piece of evidence that suggests an association with another country?
In the event that you change demographic information related to your account and introduce information suggesting an association with another country, we may need to request additional documentation to support your status.
11. What happens if a joint account is held by a reportable person under the applicable agreements?
A joint account which has one reportable owner will be treated as a reportable account and therefore the entire account may be subject to reporting under the legal requirements of the tax regulations.
12. What are the consequences, if I do not provide information? Will you be holding back funds to pay tax on my behalf?
If you do not provide the required documentation, your information could be reported to HMRC who may share that information with the relevant tax authority. Whether the information is passed on is at the discretion of HMRC. The intergovernmental agreements which UK signed means State Bank of India should not be required to hold funds back, however there may be a legal requirement to report to HMRC.
13. What do I do if I have questions relating to the Tax Regulations?
This document is solely produced as an aid to inform you of the changes made by the bank due to the new tax regulations. This is not formal advice about tax. It does not take into account your banking situation or tax residency. You should consult your tax or legal advisor should you have any further queries regarding your status under the relevant intergovernmental agreements and legislation.