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IFSC Banking Units
May 21 , 2018
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- The Reserve Bank of India (RBI) has modified norms for setting up International Financial Services Centres (IFSC) Banking Units (IBUs) by banks in IFSCs.
- The modification makes mandatory for parent bank to provide and maintain at all times minimum capital of US $ 20 million or equivalent in any foreign currency to its IBU.
- However, minimum prescribed regulatory capital, including for exposures of IBU, should be maintained on on-going basis at parent level.
- The parent bank will be also required to provide Letter of Comfort for extending financial assistance, as and when required, in the form of capital/liquidity support to IBU.
- The government has set up an IFSC in Gujarat namely Gujarat International Finance Tec-City (GIFT) in Gandhinagar, Gujarat.
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