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

Indian Navy Receives Mangrol, Third Anti-Submarine Warfare Shallow Water Craft

Mangrol, the third ASW-SWC, which has more than 80% indigenous content, was handed over to…

2 hours ago

NBSS&LUP Develops India’s First Soil Texture Map: Features, Uses and Significance

India has come up with its first-ever Soil Texture Map by the National Bureau of…

3 hours ago

National Teachers Awards 2026: Check List of 48 Awardees, Date, Selection Process and Key Details

President Droupadi Murmu will present the National Teachers’ Awards 2026 on 5 September 2026 (Teachers'…

4 hours ago

Centre Notifies ₹62,500 Crore Mobile Phone Manufacturing Scheme

Mobile Phone Manufacturing Scheme (MPMS) of INR 62,500 Crore has been announced by the Centre…

4 hours ago

Who Is Sophie Adenot? Career, Achievements and Historic ISS Spacewalk

Sophie Adenot is a French engineer, helicopter test pilot, military officer and European Space Agency…

4 hours ago

DRDO Transfers Submarine-Fired Decoy Technology to BDL

The technology for the development of Submarine-Fired Decoy (SFD) has been handed over to Bharat…

4 hours ago