Categories: Banking

IFSCA approves draft banking regulations at IFSC

International Financial Services Centres Authority (IFSCA) has conducted a meeting in New Delhi. The IFSC Authority approved the International Financial Services Centres Authority (Banking) Regulations, 2020 in the meeting. The draft banking regulations approved at the meeting opens the way for making rules for the various aspects of banking operations that would be permissible at the IFSC. As banking plays an important role at IFSC, banking regulations will help it in reaching its desired potential.

Features of Banking Regulations:

  • To lay down the obligations for setting up IFSC Banking Units (IBUs).
  • To Permit the persons residing outside India (with net worth not less than USD 1 Million) to open foreign currency accounts in any freely convertible currency at IFSC Banking Units (IBUs).
  • To permit persons residing in India (with net worth not less than USD 1 Million) to open foreign currency accounts in any freely convertible currency at IBUs in order to undertake any permissible current account or capital account transaction or any combination thereof under RBI’s Liberalized Remittance Scheme (LRS).
  • To lay down the activities of IBUs that are permissible including credit insurance and sale, credit enhancement, engage in factoring and forfeiting of export receivables, purchase of portfolios, and undertake equipment leasing.
  • To permit the authority for determining business that an IBU may be permitted to conduct in INR with persons residing in India and persons residing outside India, subject to the settlement of the financial transaction related to such business in freely convertible foreign currency.

Important takeaways for all competitive exams:

  • Chairman of the IFSCA: Injeti Srinivas.
  • Headquarters of IFSCA: Gandhinagar, Gujarat.
Sumit Arora

As a team lead and current affairs writer at Adda247, I am responsible for researching and producing engaging, informative content designed to assist candidates in preparing for national and state-level competitive government exams. I specialize in crafting insightful articles that keep aspirants updated on the latest trends and developments in current affairs. With a strong emphasis on educational excellence, my goal is to equip readers with the knowledge and confidence needed to excel in their exams. Through well-researched and thoughtfully written content, I strive to guide and support candidates on their journey to success.

Recent Posts

UAE Introduces World’s First 10G Internet Network Using U6GHz Spectrum

The United Arab Emirates has made global news by launching the world's first commercial upper…

1 hour ago

Meta Introduces New AI Model Muse Spark

Meta has introduced its first AI model from its new Superintelligence Labs, called Muse Spark,…

2 hours ago

World Bank Projects India to Drive South Asia Growth with 7.6% Expansion in FY26

The latest report by the World Bank highlights that India is expected to remain the…

2 hours ago

India Withdraws Its Plan to Host COP33 Summit in 2028

India has decided not to host the 33rd Conference of Parties (COP33) in 2028, even…

4 hours ago

Deep Jariwala Appointed as US Governor’s Chair

Indian-origin scientist Deep Jariwala has been selected for one of the most respected research roles…

4 hours ago

IIM Rohtak Wins BIMTECH’s ‘Hermes’ Dialogue 6.0,’ National Debate with Participants Representing 12 Countries

In a recent academic event, Birla Institute of Management Technology (BIMTECH), Greater Noida, successfully organized…

5 hours ago