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

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.