Laws and sections by number or title, due dates, pages, and updates.
Financial institutions in International Financial Services Centres offer financial products linked to Indian Rupee. The Reserve Bank of India clarifies the definition of the term overseas entity does not include branches of Indian banks and branches of other Indian financial institutions operating in IFSC. Therefore, these branches offer financial products linked to Indian Rupee subject to directions of the Authority. Financial institutions refer to Section A.4(b) of Reserve Bank of India Master Direction dated January 1, 2016.
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Ask about this circular
[Image omitted. See the official document.]
International Financial Services Centres Authority
CIRCULAR
F. No. 191/IFSCA/EC-NDF-INR/2020-21/1
Date: August 25, 2021
To, All Financial Institutions
Dear Sir/ Madam,
Subject: Participation in financial products linked to Indian Rupee (INR)
Financial Institutions (FIs) may refer to Section A.4(b) of Reserve Bank of India's Master Direction – Direct Investment by Residents in Joint Venture (JV) / Wholly Owned Subsidiary (WOS) Abroad [1]dated January 1, 2016 (as amended).
The Reserve Bank of India has clarified that the definition of the term "overseas entity" in the abovementioned section shall not include branches of Indian banks and branches of other Indian financial institutions operating in IFSC. Therefore, branches of Indian banks and branches of other Indian financial institutions operating in IFSC may, subject to the directions issued by the Authority, offer financial products linked to Indian Rupee.
Yours faithfully,
Supriyo Bhattacharjee
General Manager
supriyo.b@ifsca.gov.in
[1] RBI/FED/2015-16/10 FED Master Direction No. 15/2015-16 dated January 1, 2016 (as amended).
