| Date: |
31-03-2015
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| Notification No: |
RBI/2014-15/530 A.P. (DIR Series) Circular No.92
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| Issuing Authority: |
RBI
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| Type: |
A.P.D.(Series) Circulars
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| File No: |
RBI/2014-15/530 |
| Subject: |
Operational guidelines on International Financial Services Centre (IFSC)
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RBI/2014-15/530
A.P. (DIR Series) Circular No.92
March 31, 2015
To
All Category – I Authorised Dealer Banks
Madam/ Sir,
Operational guidelines on International Financial Services Centre (IFSC)
Attention of Authorised Dealers Category – I (AD Category - I) banks is invited
to the Foreign Exchange Management (International Financial Services Centre)
Regulations 2015 dated March 2, 2015, a copy of which is at Annex.
- In terms of the above Regulations, a financial institution or a
branch of a financial institution set up in the IFSC and permitted / recognised as such by the Government or a Regulatory Authority shall be
treated as person resident outside India. Therefore, their transaction with
a person resident in India shall be treated as a transaction between a
resident and non- resident and shall be subject to the provisions of Foreign
Exchange Management Act, 1999 and the Rules/Regulations/Directions issued
thereunder.
- The financial transaction in this context shall mean making or receiving
payment, drawing, issuing or negotiating any bills of exchange or promissory
note, transferring any security or acknowledging any debt. Similarly,
financial service shall mean any activity which a financial institution is
permitted to carry on by the Respective Act of the Parliament or Government
of India or any Regulatory Authority empowered to regulate the concerned
financial institution.
- It may be noted that subject to the provisions of Section 1 (3) of Foreign
Exchange Management Act, 1999, nothing contained in any other Regulations
shall apply to a financial institution or a branch of a financial
institution set up in an IFSC unless there is some express and specific
provision to that effect in the Foreign Exchange Management (International
Financial Services Centre) Regulations 2015 or the other Regulations.
- AD Category – I banks may bring the contents of this circular to the
notice of their constituents and customers concerned.
- Reserve Bank of India has issued the subject Notification through the
Foreign Exchange Management (International Financial Services Centre)
Regulations, 2015 which have been notified vide
Notification
No.FEMA.339/2015-RB dated March 2, 2015, vide G.S.R. No. 218(E) dated March
23, 2015.
- The directions contained in this circular have been issued under section
of 47 Foreign Exchange Management Act, 1999 (42 of 1999) and are without
prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,
(A.K.Pandey)
Chief General Manager
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