Categories: Banking

Reserve Bank of India Issues Framework for Indian Banks’ Foreign Biz

The Reserve Bank of India (RBI) has put in place a framework to allow overseas subsidiaries and branches of Indian banks and financial institutions to undertake activities not specifically permitted in the Indian domestic market.

Buy Prime Test Series for all Banking, SSC, Insurance & other exams

More About this:

The framework also specifies the applicability of these instructions to International Financial Services Centres in India, including Gujarat International Finance Tec-City (GIFT City). While these activities may not need prior approval, they are subject to compliance with all applicable laws/regulations and conditions stipulated by the RBI and those prescribed by the host regulator.

About The Compliance:

The parent Indian bank and financial Institution shall ensure that dealing in such products is done with the prior approval from their board and, if required, the appropriate authority in the jurisdictions concerned. They must have adequate knowledge, understanding, and risk management capability for handling such products, added the RBI.

Its Impact:

These entities can act as market makers for products only if they have the ability to price/value such products and the pricing of such products is demonstrable at all times. Their exposure and mark-to-market on these products are appropriately captured and reported in the returns furnished to the central bank.

They have to provide information about dealing in such financial products in the manner, format, and within the time frame as prescribed by the RBI.

They are barred from dealing in products linked to the rupee unless specifically permitted by the RBI. Also, they are not allowed to accept structured deposits from any Indian residents.

Piyush Shukla

Recent Posts

What was the Old Name of Goa? Know About It

Goa is a small state on the western coast of India, famous for its beaches,…

12 hours ago

Top-10 Most Searched Words in 2025, Check the List

Every year, people around the world search for words that show what interests them the…

13 hours ago

Deepinder Goyal Tops Hurun Rich List 2025 for India’s Self-Made Entrepreneurs

The Hurun Rich List 2025 has once again highlighted India’s dynamic startup and business ecosystem.…

14 hours ago

Indian Team Bags Global Top Honour at NASA Space Apps Challenge

India’s innovation ecosystem has received global recognition as an Indian satellite internet concept emerged as…

14 hours ago

India’s Net Direct Tax Collections Rise 8% to ₹17.05 Lakh Crore Till December 17

India’s fiscal position showed resilience in the current financial year as net direct tax collections…

14 hours ago

What is SabhaSaar Initiative? Features, Significance, and Latest Update

Recently, the Union Minister informed the Rajya Sabha about the progress and impact of the…

15 hours ago