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RBI modifies rules for setting up IFSC Banking Units

IANS  |  Mumbai 

The of India (RBI) on Thursday modified some of its "terms and conditions" for setting up of IFSC (International Centres) Banking Units (IBUs), said a notification from the central

The modifications are based on the suggestions the RBI has received from the stakeholders.

"With a view to enabling to start their operations, the parent will be required to provide a minimum capital of $20 million or equivalent in any foreign currency to its IBU which should be maintained at all times," the RBI said in the notification.

"However, the minimum prescribed regulatory capital, including for the exposures of the IBU, shall be maintained on an on-going basis at the parent level, as per regulations in the home country, and the IBU shall submit a certificate to this effect obtained from the parent on a half-yearly basis to RBI.

"The will be required to provide a Letter of Comfort for extending financial assistance, as and when required, in the form of capital or liquidity support to IBU," the notification said.

In April 2015, the Reserve Bank had formulated a scheme for setting up of by banks at Gujarat International Tec-City (GIFT) in Gandhinagar.

--IANS

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, May 17 2018. 23:58 IST
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