On 7-7-2023, the International Financial Services Centres Authority (‘IFSCA’) notified the International Financial Services Centres Authority (Banking) (Amendment) Regulations, 2023 to amend the International Financial Services Centres Authority (Banking) Regulations, 2020.
Key Points:
1. The following definitions has been inserted:
• IFSC Banking Company (‘IBC’) meaning a Banking Unit licensed or permitted by the Authority to operate in an IFSC as a subsidiary company of the Parent Bank.
• IFSC Banking Unit (‘IBU’) meaning a Banking Unit licensed or permitted by the Authority to operate in an IFSC as a branch of the Parent Bank.
• Specified foreign currency meaning currencies specified in the First Schedule to these regulations.
• Subsidiary company meaning a company that satisfies the definition u/s 2(87) of the Companies Act, 2013.
2. Regulation 3 (1-A) relating to A Banking unit setting up in an IFSC as an
• IFSC Banking Unit
• IFSC Banking Company
If a Parent Bank who has already set up an IBU in an IFSC, can be permitted to convert the same to an IBC, with the prior approval of the Authority.
1. Regulation 3 (2-A) has been inserted which allows the Parent Bank to withdraw the application for licence at any time before the grant of licence or permission by the Authority.
2. Regulation 3 (3-A) has been inserted which lays down the requirements for grant of licence or permission by the Authority to set up an IFSC Banking Company:
• Parent bank will have to provide necessary capital for the IBC.
• Parent bank will obtain a No Objection Letter from its Home Regulator regarding setting up of the IBU in the IFSC as a Subsidiary company of the Parent bank.
3. The First Schedule has been inserted which lays down the Specified Foreign Currencies:
• US Dollar (USD)
• Euro (EUR)
• Japanese Yen (JPY)
• UK Pound Sterling (GBP)
• Canadian Dollar (CAD)
• Australian Dollar (AUD)
• Swiss Franc (CHF)
• Hong Kong Dollar (HKD)
• Singapore Dollar (SGD)
• UAE Dirham (AED)
• Russian Rouble (RUB)
