fbpx

International Financial Services Centres Authority (Banking) Regulations, 2020 approved

  • IASbaba
  • November 13, 2020
  • 0
UPSC Articles
Print Friendly, PDF & Email

International Financial Services Centres Authority (Banking) Regulations, 2020 approved

Part of: GS Prelims and GS-III – Economy

In news

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.

For a dedicated peer group, Motivation & Quick updates, Join our official telegram channel – https://t.me/IASbabaOfficialAccount

Search now.....