Supreme Court Upholds Cancellation of Bail For Man Accused of Assault Causing Miscarriage  ||  J&K&L High Court Invalidates Residence-Based Reservation, Citing Violation of Article 16  ||  Kerala HC Denies Parole to Life Convict in TP Chandrasekharan Murder Case For Cousin's Funeral  ||  High Court Grants Bail to J&K Bank Manager in Multi-Crore Loan Fraud Case, Emphasizing Bail As Rule  ||  J&K HC: Civil Remedy Alone Cannot Be Used To Quash Criminal Proceedings in Enso Tower Case  ||  Delhi HC: Non-Proof of Hearing Notice Dispatch Doesn’t by Itself Show no Personal Hearing Was Given  ||  Delhi High Court: No Construction or Residence Allowed on Yamuna Floodplains, Even For Graveyards  ||  J&K High Court: Right to Speedy Trial Includes Appeals; Closes 46-Year-Old Criminal Case Due to Delay  ||  J&K High Court: Courts Must Not Halt Corruption Probes, Refuses to Quash FIR  ||  J&K&L HC: Matrimonial Remedies May Overlap, But Cruelty Claims Cannot be Selectively Invoked    

Setting up of IFSC Banking Units (IBUs) - Permissible activities- (Reserve Bank of India) (21 Jan 2020)

MANU/RMIC/0010/2020

Banking

This is with reference to RBI circular DBR.IBD.BC.14570/23.13.004/2014-15 dated April 01, 2015, as modified from time to time, setting out RBI directions relating to IFSC Banking Units (IBUs). The Task Force (TF) on Offshore Rupee Markets chaired by Smt. Usha Thorat had recommended introduction of non-deliverable Rupee Derivatives in IFSCs in a phased manner, starting with exchange traded currency derivatives (ETCD) to be followed by Over the Counter (OTC) derivatives at a later stage.

RBI's decision to accept the above recommendation and permit Rupee derivatives (with settlement in foreign currency) to be traded in IFSC was announced in para 2 of the Statement on Developmental and Regulatory policies issued on October 04, 2019. Accordingly, a new paragraph No.2.6 (xiv), has been added to Annex I and II of the aforesaid circular dated April 1, 2015, which reads as under:

"IBUs are allowed to participate in exchange traded currency derivatives on Rupee (with settlement in foreign currency) listed on stock exchanges set up at IFSCs. Banks shall ensure that their IBUs have necessary expertise to price, value and compute the capital charge and manage the risks associated with the products / transactions intended to be offered and should also obtain their Board's approval for undertaking such transactions. IBUs shall follow all other risk mitigation and prudential measures as applicable and detailed in this circular while participating in these products. Further, IBUs may also be guided by A.P (DIR Series) Circular No. 17 on "Introduction of Rupee derivatives at International Financial Services Centres (IFSCs)" dated January 20, 2020."

Further, the existing paragraph 2.6(vii) of Annex I and II of the aforesaid circular dated April 01, 2015, is amended by adding the following at the end thereof: "This is subject to the provisions of paragraph 2.6(xiv)."

All other terms and conditions contained in the aforementioned circular remain unchanged.

Tags : IFSC   BANKING UNITS   PERMISSIBLE ACTIVITIES  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved