RBI Notifies for Compliance with Statutory or Regulatory Norms for Operations in Foreign Jurisdictions and IFSCs

On 1st December 2022, the Reserve Bank of India (RBI) issued a Notification in regard to the compliance of statutory or regulatory norms for the operations of subsidiaries and the branches of Indian banks, All India Financial Institutions (AIFIs) in foreign jurisdictions and International Financial Services Centers (IFSCs).

The RBI through the Circular – DBOD.No.BP.BC.89 /21.04.141/2008-09 issued on 1st December 2008 and Circular – DBOD.No.BP.BC.111/21.04.157/2013-14 issued on 12th May 2014 had stated notifications to Indian banks and AIFIs in regard to the issue of dealing in financial products of their branches or subsidiaries that operate outside India. Upon review, it was taken into consideration that a framework was required to be established for allowing them in undertaking activities that are not specifically permitted in the Indian domestic market, along with specifying the applicability of these instructions to International Financial Services Centers (IFSCs) in India including Gujarat International Finance Tec-City (GIFT City).