RBI allows Financial Institutions to Conduct Business in Indian National Rupee in IFSC [Read Notification]

IFSC - Securitisation Transactions - Corporate Loans - RBI - Taxscan

The Reserve Bank of India (RBI) has allowed the Financial Institutions to conduct businesses in Indian National Rupees in International Financial Services Centres (IFSC).

The RBI has issued notification On January 7, 2020, added a new proviso to Foreign Exchange Management (International Financial Services Centre) Regulations to incorporate this change.

The Newly added proviso reads as, “Provided that, Reserve Bank may, through general or specific permission, allow a financial institution or a branch of a financial institution to conduct such business in Indian Rupee with such persons, whether resident or otherwise as it may determine.”

An IFSC caters to customers outside the jurisdiction of the domestic economy. Such centres deal with flows of finance, financial products, and services across borders.

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