International Financial Services Centres Authority (Banking) Regulations, 2020 (Amendment)
The International Financial Services Centres Authority (IFSCA) has released an updated document of “International Financial Services Centres Authority (Banking) Regulations, 2020” as amended up to 6th July 2021.
These regulations incorporated the amendment proposed by the IFSCA Banking Regulations, 2021 with respect to compliance with capital provision criteria by parent banks of IFSC banking units, adherence to Home Regulator’s directions, maintaining leverage ratios, adherence to exposure ceiling norms, reservation requirements and others.
Some such amendments state that the parent bank shall provide necessary capital for the Banking Units as specified by the Authority, Banking Units shall continue to comply with the directions and instructions issued by their Home Regulator, unless otherwise specified by the Authority, Banking Units may open accounts in a freely convertible foreign currency for individuals and corporate or institutional entities, Banking Units may undertake any or all of the permitted activities mentioned in the Banking Regulation Act, 1949, except those expressly prohibited by the Authority.
