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Specific circulars and directions previously issued by the Reserve Bank of India and the International Financial Services Centres Authority cease to apply to IFSC Banking Units as the IFSCA Banking Handbook takes effect. The affected provisions include various prudential norms, capital regulations, and earlier authority guidelines that are now subsumed in the Handbook. Certain other Reserve Bank of India circulars continue to apply until further notice. IFSC Banking Units must ensure compliance with these changes.
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International Financial Services Centres Authority
F.No.110/IFSCA/Banking Regulation/2021-22/10
December 31, 2021
To, All IFSC Banking Units (IBUs)
Dear Sir/Madam,
Subject: Non-applicability or withdrawal of some circulars / directions previously issued / adopted by the Authority
IFSC banking units may please refer to circular F.No.110/IFSCA/Banking Regulation/2021-22/9 dated November 12, 2021 on the amendments and additions to IFSCA Banking Handbook that shall come into effect from January 1, 2022.
As a consequence, the provisions of the circulars / directions -listed in Annex I from those issued by the Reserve Bank of India (RBI) and adopted by IFSCA vide its circular F.No.110/IFSCA/Banking Regulation/2020-21/1 dated December 4,2020, shall cease to be applicable to the IBUs from the date of coming into effect of the directions in the Handbook i.e., January 1, 2022.
The provisions of the circulars, listed in Annex II, from those issued by the RBI and adopted by IFSCA¹ shall continue to be applicable to IBUs till further notice.
Further, provisions of the circulars /guidelines listed in Annex III issued by the Authority have been subsumed in the Handbook. Accordingly, these circulars / guidelines (Annex III) shall be deemed to be withdrawn with effect from January 1, 2022
IBUs are directed to ensure compliance to the directions in this circular
Yours faithfully
Kamlesh Sharma General Manager kamlesh.sharma27@ifsca.gov.in
Supriyo Bhattacharjee General Manager supriyo.b@ifsca.gov.in
¹ F.No.110/IFSCA/Banking Regulation/2020-21/1 dated December 4,2020
Annexure I
Circulars/ Directions - issued by RBI and adopted by IFSCA that shall cease to be applicable to the IBUs w.e.f January 1, 2022
| Statute | Name of direction/regulations/guidelines |
|---|---|
| Banking Regulation Act,1949 | 1. Reserve Bank of India (Financial Services Provided by Banks) Directions, 2016 dated May 26, 2016 (as amended) |
| 2. Master direction on Frauds - Classification and Reporting by Commercial Banks and Select FIs dated July 1,2016 (as amended) | |
| 3. Master Circular – Basel III Capital Regulations dated July 1,2015 (as amended) | |
| 4. Master Circular – Exposure Norms dated July 1,2015 (as amended)⁵ | |
| 5. Master Circular - Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances dated July 1,2015 (as amended) | |
| 6. Master Circular on Guarantees & Co-acceptances dated July 1, 2015 (as amended) | |
| 7. Master Circular- Loans and Advances – Statutory and Other Restrictions dated July 1, 2015 (as amended) | |
| 8. Master Circular – Rupee / Foreign Currency Export Credit and Customer Service to Exporters dated July 1,2015 (as amended) | |
| 9. Basel III Framework on Liquidity Standards – Liquidity Coverage Ratio (LCR), Liquidity Risk Monitoring Tools and LCR Disclosure Standards dated June 9,2014 (as amended) | |
| 10. Basel III Framework on Liquidity Standards – Liquidity Coverage Ratio (LCR) dated April 17,2020 (as amended). | |
| 11. Basel III Framework on Liquidity Standards – Net Stable Funding Ratio (NSFR) – Final Guidelines dated May 17, 2018 (as amended) | |
| 12. Prudential Framework for Resolution of Stressed Assets dated June 7,2019 ( as amended) | |
| 13. Master Circular – Para-banking Activities dated July 1, 2015 (as amended) | |
| 14. Guidelines on Partial Credit Enhancement to Corporate Bonds dated September 24,2015 (as amended) | |
| 15. Revisions to the Guidelines on Securitisation Transactions and Direct Assignment of Cash Flows dated May 7,2012 (as amended) | |
| Reserve Bank of India Act,1934 | 1. Legal Entity Identifier Code for participation in non-derivative markets dated November 29,2018 (as amended) |
| 2. Repurchase Transactions (Repo) (Reserve Bank) Directions, 2018 dated July 24, 2018 (as amended) | |
| 3. Rupee Interest Rate Derivatives (Reserve Bank) Directions, 2019 dated June 26, 2019(as amended)⁶ | |
| 4. The Electronic Trading Platforms (Reserve Bank) Directions, 2018 dated October 5,2018 (as amended from time to time) | |
| 5. Introduction of Legal Entity Identifier for OTC derivatives markets dated June 1,2017 (as amended) | |
| Foreign Exchange Management Act,1999 | 1. Master Direction – Export of Goods and Services dated January 1,2016 (as amended) |
Annexure II
Circulars/ Directions - issued by RBI and adopted by IFSCA that shall continue to be applicable to the IBUs
| Statute | Name of direction/regulations/guidelines |
|---|---|
| Banking Regulation Act,1949 | 1. Master Circular – Know Your Customer norms / Anti-Money Laundering standards / Combating Financing of Terrorism / Obligation of banks and financial institutions under the Prevention of Money Laundering Act, 2002 dated July 1,2015 (as amended) |
| 2. Master Direction - Know Your Customer (KYC) Directions, 2016 dated February 25,2016 (as amended) | |
| Reserve Bank of India Act,1934 | 1. Currency Futures in International Financial Services Centre (Reserve Bank) Directions, 2020 dated January 20, 2020. |
| 2. Currency Options in International Financial Services Centre (Reserve Bank) Directions, 2020 dated January 20,2020 | |
| Foreign Exchange Management Act,1999 | 1. Foreign Exchange Management (International Financial Services Centre) Regulations, 2015 dated March 2,2015 (as amended) |
| 2. Master Direction – Compounding of contraventions under FEMA,1999 dated January 1, 2016 (as amended) | |
| 3. Master Direction – Miscellaneous dated January 1,2016 (as amended) |
Annexure III
Circulars/ Directions - issued by IFSCA, subsumed in the IFSCA Banking handbook and deemed to be withdrawn w.e.f January 1, 2022
| Sr No | Subject | Circular No. | Date of Issue |
|---|---|---|---|
| 1) | Minimum Holding Period on Sale/Transfer of loans assets | 110/IFSCA/Banking Regulation/2021-22/8 | November 11, 2021 |
| 2) | OTC derivatives at IFSC – Amendment- OTC derivatives on Indian Government Bonds (IGBs) and State Development Loans (SDLs) | 110/IFSCA/Banking Regulation/2021-22/7 | October 5, 2021 |
| 3) | Participation in financial products linked to Indian Rupee (INR) | 191/IFSCA/EC-NDF-INR/2020-21/1 | August 25, 2021 |
| 4) | Issue of IFSCA Banking Handbook | 110/IFSCA/Banking Regulation/2021-22/6 | August 13, 2021 |
| 5) | Accounting Standard to be followed by IFSC Banking Units (IBUs) for the purpose of IFSCA regulatory reporting and compliance | 383/IFSCA/IFSC RULE BOOK/IFRS/ IRAC NORMS/1 | July 30, 2021 |
| 6) | Guidelines for issuance of Certificate of Deposits | 110/IFSCA/Banking Regulation/2021-22/5 | July 20, 2021 |
| 7) | Guidelines for issuance of Certificate of Deposits- Withdrawal | 110/IFSCA/Banking Regulation/2021-22/4 | May 21, 2021 |
| 8) | IFSC (Banking) Regulation, 2020- Directions for implementation – Criteria for BUs to become trading/clearing members of IFSCA recognized stock exchanges- clarification | 110/IFSCA/Banking Regulation/2021-22/3 | May 17, 2021 |
| 9) | Offering of Portfolio Management Service (PMS) and Investment Advisory Service (IAS) by BUs - Guidelines | 110/IFSCA/Banking Regulation/2021-22/1 | April 26, 2021 |
| 10) | Net worth criteria for resident individuals in India for opening bank account with BU for the purpose of investing in securities- clarification | 110/IFSCA/Banking Regulation/2021-22/13 | February 19, 2021 |
| 11) | IFSC (Banking) Regulation, 2020- Directions for implementation – Definition of Constituent | 110/IFSCA/Banking Regulation/2021-22/12 | February 16, 2021 |
| 12) | Transactions with residents of Nepal and Bhutan- clarification | 110/IFSCA/Banking Regulation/2021-22/11 | February 11, 2021 |
| 13) | IFSC (Banking) Regulations, 2020 – Directions for implementation – Use of Electronic Trading Platforms (ETP) and Brokers | F.No.201/IFSCA/ETP/2020-21 | February 2, 2021 |
| 14) | Reporting of data on structured deposits accepted by Banking Units. | 110/IFSCA/Banking Regulation/2021-22/10 | February 3, 2021 |
| 15) | Reporting of data on OTC derivatives undertaken by the BUs | 110/IFSCA/Banking Regulation/2021-22/9 | February 2, 2021 |
| 16) | IFSC (Banking) Regulations, 2020 – Directions for implementation – Transfer of assets through loan participation agreement | 110/IFSCA/Banking Regulation/2020-21/8 | December 30, 2020 |
| 17) | Instructions and clarifications on circulars issued under the IFSC (Banking) Regulations, 2020 | 110/IFSCA/Banking Regulation/2020-21/7 | December 24, 2020 |
| 18) | IFSC(Banking) Regulation, 2020 – Guideline on determination of net worth of ‘Qualified Individual’ and ‘Qualified Resident Individual’ | 110-1/IFSCA/Banking Regulation/2020-21/6 | December 11, 2020 |
| 19) | IFSC (Banking) Regulations, 2020 – Prudential regulatory requirements | 110/IFSCA/Banking Regulation/2020-21/5 | December 11, 2020 |
| 20) | Directions on business in foreign currency at International Financial Services Centres (IFSCs) | 110/IFSCA/Banking Regulation/2020-21/4 | December 4, 2020 |
| 21) | International Financial Services Centres Authority (Deposits) Directions, 2020 | 110/IFSCA/Banking Regulation/2020-21/3 | December 4, 2020 |
| 22) | OTC Derivatives at IFSCs | 110/IFSCA/Banking Regulation/2020-21/2 | December 4, 2020 |
| 23) | IFSC(Banking) Regulation,2020 – Directions for implementation | 110/IFSCA/Banking Regulation/2020-21/1 | December 4, 2020 |
