UPSC Articles
International Financial Services Centres Authority (Banking) Regulations, 2020 approved
Part of: GS Prelims and GS-III – Economy
In news
- The International Financial Services Centres Authority (IFSCA) approved the International Financial Services Centres Authority (Banking) Regulations, 2020.
Key takeaways
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 IBUs to undertake any transaction under the Liberalised Remittance Scheme (LRS) of the RBI.
- Laying down the permissible activities of IBUs including credit enhancement, credit insurance, and sale, etc.
- 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.
- The above mentioned regulations will be notified by the Government of India in due course.
