TaxTMI 
TaxTMI 
International Financial Services Centres Authority (Banking) (Amendment) Regulations, 2023
X X X X Extracts X X X X
X X X X Extracts X X X X
....rincipal Regulations), the existing clause (c) under sub-regulation (1) of regulation 2, shall substituted with the following, namely : "Banking Unit" or "BU" means a financial institution defined under clause (c) of sub-section (1) of Section 3 of the Act that is licensed or permitted by the Authority to undertake permissible activities under these regulations." 3. In the Principal Regulations, after clause (ea) of sub-regulation (1) of regulation 2, the following clauses shall be inserted, namely: "(eb) "IFSC Banking Company" or "IBC" means a Banking Unit licensed or permitted by the Authority to operate in an IFSC as a subsidiary company of the Parent Bank. (ec) "IFSC Banking Unit" or "IBU" means a Banking Unit licensed or permitted by the Authority to operate in an IFSC as a branch of the Parent Bank." 4. In the Principal Regulations, the existing clause (i) under sub-regulation (1) of regulation 2, shall substituted with the following, namely: "International Financial Services Centre" or "IFSC" shall have the same meaning as assigned to it under section clause (g) of sub-section (1) of Section 3 of the Act" 5. In the Principal Regul....
X X X X Extracts X X X X
X X X X Extracts X X X X
....clause shall be inserted, namely, "(2A) The application filed under regulation 3(2) can be withdrawn by the Parent Bank at any time before the grant of the license or permission by the Authority." 14. In the Principal Regulations, sub-regulation 3 of regulation 3, shall be substituted with the following, namely: "The applicant shall satisfy the following requirements for grant of licence or permission by the Authority to set up an IFSC Banking Unit: (a) The Parent Bank shall provide necessary capital for the IBU, subject to a minimum of USD 20 million or such other level of capital that may be specified by the Authority. Such capital shall be maintained at the Parent Bank in the manner as specified by the Authority. (b) The Parent Bank shall obtain a No Objection Letter from its home regulator regarding setting up of the Banking Unit in the IFSC as a branch of the Parent Bank ; (c) The Parent Bank shall submit an undertaking that it shall provide liquidity to its IBU whenever needed for the operations of the IBU (d) Any other requirement as may be specified by the Authority." 15. In the Principal Regulations, after sub-reg....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ity." 21. In the Principal Regulations, sub-regulation 1 of regulation 5, shall be substituted with the following, namely: "A Banking Unit shall maintain the Liquidity Coverage Ratio as may be specified by the Authority Provided that in the case of an IBU the Liquidity Coverage Ratio may be maintained by the Parent Bank with the prior approval of the Authority." 22. In the Principal Regulations, sub-regulation 2 of regulation 5, shall be substituted with the following, namely: "Net Stable Funding Ratio shall be made applicable to a Banking Unit as and when determined by the Authority and shall be maintained by a Banking Unit Provided that in the case of an IBU, the Net Stable Funding Ratio may be maintained by the Parent Bank with the prior approval of the Authority." 23. In the Principal Regulations, regulation 6, shall be substituted with the following, namely: "Banking Units shall adhere to the norms and guidelines relating to Leverage Ratio as may be specified by the Authority, from time to time " 24. In the Principal Regulations, regulation 8, shall be substituted with the following, namely: "(1) The liabilities....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... "(1) A Banking Unit may undertake any or all the activities mentioned under clause (e) of sub-section (1) of Section 3 of the Act and Section 6 of the Banking Regulation Act, 1949, except those which are expressly prohibited either by the Home Regulator of the Parent Bank or by the Authority, subject to compliance with such terms and conditions or guidelines as may be specified by the Authority, including matters relating to design, execution and risk management. (2) For the removal of doubts, it is hereby declared that the activity of providing "Referral services" is a permitted activity under these regulations." 29. In the Principal Regulations, regulation 14, shall be substituted with the following, namely: "A Banking Unit shall follow the Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer Guidelines issued by the Authority." 30. In the Principal Regulations, regulation 16 shall be substituted with the following, namely: "A Banking Unit shall maintain its books of accounts, records and documents in the specified foreign currencies, as may be declared at the time of making an application under Regulation 3." 31. ....