GST administration for entertainment and luxury services is centralised through creation of Ward No. 209 (Entertainment), with jurisdiction extending across the National Capital Territory of Delhi. Registered dealers engaged in entertainment and luxury services are to be transferred to the specialised ward, and future registrations for entertainment activities are to be dealt with there. Officers appointed under the Delhi GST framework may exercise their statutory powers in relation to the ward.

Failure by a Parent Bank applicant or Banking Unit to comply with conditions attached to a banking licence may result in withdrawal of that licence. Before withdrawal, the Banking Unit must be given thirty days to make submissions. The Authority may additionally take any other action considered appropriate under the Act.

Power to specify procedures and issue clarifications enables the Authority to prescribe norms, procedures, processes and manners through guidelines or circulars for implementing the banking regulations and incidental matters. The Authority may also grant relaxations to facilitate and regulate financial services relating to banking and investment activities in an International Financial Services Centre.

Regulation 19 permits a Banking Unit to exchange margins with a counterparty Banking Unit or overseas regulated entity for non-centrally cleared over-the-counter currency, interest-rate, credit and commodity derivative contracts. Margin may be exchanged in freely convertible currency, permissible listed debt securities or sovereign securities to reflect mark-to-market exposure, subject to a legally enforceable netting arrangement and specifications issued by the Authority.

Deposit insurance is not provided through any centralised scheme for deposits held with a Banking Unit under the International Financial Services Centres Authority (Banking) Regulations, 2020.

Maintenance of accounts by Banking Units permits an INR account funded from freely convertible foreign currency to meet administrative and statutory expenses and any other purposes specified by the Authority. Banking Units must maintain separate nostro accounts with correspondent banks, segregated from nostro accounts maintained by other Indian branches of the same Parent Bank.

Banking Units must maintain books of accounts, records and documents in the freely convertible foreign currency declared at the time of making their application. This requirement governs the currency in which core accounting records and related documentation are maintained.

Banking Units must furnish the Authority with operational information at such times and in such manner and form as specified by the Authority. Reports are required to be submitted in US Dollar unless otherwise specified. The reporting framework permits the Authority to determine applicable timing, format and currency requirements.

Banking Units must comply with Know Your Customer norms, counter-terrorism financing measures, anti-money laundering requirements and related reporting obligations issued by the Reserve Bank, except where the Authority specifies otherwise.

Regulation 13 permits Banking Units to undertake activities allowed under section 3(1)(e) of the Act or section 6 of the Banking Regulation Act, 1949, unless expressly prohibited. Such activities remain subject to applicable terms, conditions and guidelines, including product design, execution and risk management requirements. The substituted provision adopts a statutory cross-reference model in place of an earlier activity-specific framework covering lending, investments, trade finance, derivatives, Foreign Portfolio Investor operations, clearing, portfolio management and investment advisory services.

Foreign currency account transactions prohibit cash transactions. Freely convertible foreign currency accounts may be opened, held and maintained with a Banking Unit as current, savings or term-deposit accounts for individuals, and as current or term-deposit accounts for other account holders, subject to specified conditions.

Foreign currency accounts with Banking Units may be opened in a freely convertible foreign currency by individuals and corporate or institutional entities, whether resident in India or outside India, subject to conditions specified by the Authority. Individuals who are persons resident in India may open, hold and maintain such accounts for permissible current account transactions, capital account transactions, or a combination of both under the Liberalised Remittance Scheme.

Banking business in an International Financial Services Centre must ordinarily be conducted in freely convertible foreign currencies with persons specified by the Authority, whether resident or non-resident. INR-denominated business may be permitted with specified persons only where the related financial transaction is settled in freely convertible foreign currency.

Lender of Last Resort support is unavailable to a Banking Unit under Regulation 9 of the International Financial Services Centres Authority (Banking) Regulations, 2020.

Reserve requirements for a Banking Unit exempt its liabilities from Cash Reserve Ratio and comparable reserve obligations, except deposits raised from individuals resident in India or outside India. Such deposits remain subject to reserve ratios specified by the Authority. The framework replaces the earlier classification based on Qualified Individuals and Qualified Resident Individuals with a residence-based individual-depositor category.

Banking Units must comply with exposure ceiling norms and guidelines specified by the Authority from time to time. The revised prudential framework replaces earlier fixed limits linked to the Parent Bank's Tier 1 capital for single borrowers and borrower groups. Exposure controls are governed by the prevailing regulatory norms and guidelines rather than previously specified borrower-based thresholds.

Banking Units must maintain a leverage ratio in accordance with prudential norms and guidelines specified by the Authority from time to time. The requirement is an ongoing regulatory compliance obligation, and applicable standards are determined through the Authority's leverage-ratio framework and subsequent directions.

Banking Units must maintain the Liquidity Coverage Ratio, although permission may allow the Parent Bank to maintain it. The Net Stable Funding Ratio applies when determined by the Authority and must then be maintained by the Banking Unit, subject to permitted maintenance by the Parent Bank.

Banking Units in an International Financial Services Centre must comply with prudential norms and guidelines prescribed by the Authority. They must also continue to follow Reserve Bank of India directions and instructions applicable to IFSC Banking Units, unless the Authority specifies otherwise.

Indian and foreign banks require an Authority licence to establish a Banking Unit in an International Financial Services Centre. The Parent Bank must apply as prescribed, maintain the required starting capital on an unimpaired basis, obtain home-regulator clearance, and undertake to provide liquidity when needed. Foreign banks without an Indian presence are subject to an additional mechanism. Licensing may carry further conditions, with an opportunity for written submissions before a reasoned rejection. Each Parent Bank may establish only one Banking Unit in each International Financial Services Centre as a branch, while Representative Offices remain subject to specified conditions.