SC: General Reference to a Tender’s Arbitration Clause Does Not Incorporate it into a Contract  ||  Supreme Court: Partnership Veil May be Lifted to Detect Illegal Sub-Letting Arrangements  ||  Supreme Court: Lower Dearness Relief For Pensioners than Employees' DA is Arbitrary under Article 14  ||  Supreme Court: NCLT Should Not Assess Merits of Pre-Existing Dispute in Section 9 Applications  ||  Supreme Court Clarifies that the Right to Vote is Not a Fundamental Right But a Statutory Right  ||  Chhattisgarh High Court: Minor’s Voluntary Elopement With a Lover Does Not Constitute Kidnapping  ||  Bombay HC: Staring at Co-Worker’s Chest is Morally Wrong But Does Not Amount to Voyeurism under IPC  ||  Delhi HC: Loss of Confidence in Employees Entrusted With Funds is Valid Ground For Termination  ||  Allahabad High Court: Gram Nyayalaya Has Jurisdiction to Decide Maintenance and Execution Petitions  ||  J&K&L HC: Non-Publication of Sec 4(1) Notice in Gazette and Local Newspapers Vitiates Acquisition    

IFSC Authority approves the International Financial Services Centres Authority (Banking) Regulations, 2020- (Press Information Bureau) (11 Nov 2020)

MANU/PIBU/3914/2020

Banking

A meeting of the International Financial Services Centres Authority (IFSCA) was held today. The IFSC Authority, after detailed deliberations, approved the International Financial Services Centres Authority (Banking) Regulations, 2020.

Banking constitutes one of the major focus areas of IFSC and is expected to drive and facilitate the other constituent operations in the IFSC in due course. A self-contained regulation laying down the major principles of banking operations at IFSCs is thus an important step in the IFSC reaching its desired potential.

The Authority approved the draft banking regulations at its meeting today, which paves the way for putting in place the rules for the various aspects of banking operations that would be permissible at the IFSC.

The salient aspects of the Banking Regulations include:

Laying down the requirements for setting up IFSC Banking Units (IBUs)

Permitting persons resident outside India (having net worth not less than USD 1 Million) to open foreign currency accounts in any freely convertible currency at IFSC Banking Units (IBUs)

Permitting persons resident in India (having net worth not less than USD 1 Million) to open foreign currency accounts in any freely convertible currency at IFSC Banking Units (IBUs) to undertake any permissible current account or capital account transaction or any combination thereof under the Liberalised Remittance Scheme (LRS) of the Reserve Bank of India.

Laying down the permissible activities of IBUs including credit enhancement, credit insurance, and sale , purchase of portfolios, engage in factoring and forfeiting of export receivables and undertake equipment leasing, including aircraft leasing

Permitting the Authority to determine business that a Banking Unit may be permitted to conduct in INR with persons resident in India and persons resident outside India, subject to settlement of the financial transaction in relation to such business in freely convertible foreign currency.

The abovementioned regulations will be notified by the Government of India in due course.

Tags : IFSC AUTHORITY   APPROVAL   REGULATIONS   2020  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved