BUSINESS

RBI modifies rules for setting up IFSC Banking Units

Mumbai, May 18: The Reserve Bank of India (RBI) on Thursday modified some of its “terms and conditions” for setting up of IFSC (International Financial Services Centres) Banking Units (IBUs), said a notification from the central bank.

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

“With a view to enabling IBUs to start their operations, the parent bank 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. (IANS)