Computation of the deduction under section 80IC requires verification where the prescribed Rule 18BBB report and complete particulars for allocating common expenses between eligible and non-eligible units are not furnished. Coordinate-bench rulings may be distinguishable where the evidentiary record lacks the information needed to test the deduction calculation. Fresh examination by the Assessing Officer, after providing the assessee a reasonable opportunity, is required on the basis of complete particulars.

Regulation 22 supersedes the specified Reserve Bank circular from commencement of the International Financial Services Centres Authority (Banking) Regulations, 2020. Actions taken or purportedly taken under that circular are preserved and deemed taken under corresponding provisions of these regulations. Banking Units already operating in an International Financial Services Centre must meet any additional requirements within three months of notification, subject to an extension specified by the Authority.

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 under a legally enforceable netting arrangement for non-centrally cleared over-the-counter currency, interest-rate, credit and commodity derivative contracts. The exchange reflects mark-to-market exposure and may involve specified foreign currencies, permissible listed debt securities and sovereigns. Effective 7 July 2023, "freely convertible currency" was replaced with "specified foreign currencies" as the eligible currency description.

Deposit insurance for deposits of a Banking Unit may apply only where and to the extent provided under the Deposit Insurance and Credit Guarantee Corporation Act, 1961 and its rules or regulations. Coverage depends on the applicability, scope and limits of that statutory deposit-insurance regime. This replaces the earlier position that no centralised deposit insurance scheme applied to deposits of a Banking Unit.

A Banking Unit may maintain an INR account out of specified foreign currencies to meet administrative and statutory expenses and other purposes specified by the Authority. It must also maintain separate nostro accounts with correspondent banks, distinct from nostro accounts maintained by other branches of its parent bank in India.

Banking Units must maintain books of accounts, records and documents in the specified foreign currencies declared when applying under Regulation 3. The requirement replaces the earlier formulation requiring maintenance in a freely convertible foreign currency.

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.

Regulation 14 requires every Banking Unit to comply with Anti-Money Laundering, Counter-Terrorist Financing and Know Your Customer Guidelines issued by the Authority. The substituted framework, effective from 7 July 2023, replaces the earlier requirement to follow Reserve Bank-issued Know Your Customer norms, terrorist-financing controls, anti-money-laundering requirements and related reporting obligations, unless otherwise specified by the Authority.

Regulation 13 permits a Banking Unit to undertake banking activities within the statutory scope of the International Financial Services Centres Authority Act and the Banking Regulation Act, 1949, unless expressly prohibited by the Home Regulator of the Parent Bank or the Authority. Activities must comply with applicable terms, conditions and guidelines on design, execution and risk management. Referral services are expressly included among permitted activities. The framework replaces an earlier itemised list with a broader permission model subject to regulatory restrictions and compliance controls.

Cash transactions in foreign currency accounts are prohibited. Accounts in specified foreign currencies may be opened, held and maintained with a Banking Unit. Individual account holders may maintain current, savings or term-deposit accounts, whereas other account holders may maintain only current or term-deposit accounts. Such accounts are subject to conditions specified by the Authority. The provision replaced the earlier reference to freely convertible foreign currency with specified foreign currencies.

Foreign currency accounts may be opened by Banking Units in specified foreign currencies for 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 with a Banking Unit for transactions connected with, or arising from, permissible current account transactions, capital account transactions, or both, under the Liberalised Remittance Scheme.

Banking Units must conduct permitted business in specified foreign currencies with resident or non-resident persons identified by the Authority. INR business may be permitted with specified persons, subject to settlement of the related financial transaction in specified foreign currencies. The applicable currency standard replaces the former reference to freely convertible foreign currencies.

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

Regulation 8 exempts IBU liabilities from the Cash Reserve Ratio and other specified requirements, except deposits raised from individuals resident in India or outside India. Those deposits are subject to reserve ratios specified by the Authority. IBCs must maintain reserves in the manner mandated under the Banking Regulation Act, 1949 and the Reserve Bank of India Act, 1934.

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 comply with leverage-ratio norms and guidelines specified by the Authority from time to time. This creates a continuing prudential regulatory obligation while leaving the applicable leverage-ratio requirements to be determined through Authority-issued norms and guidelines.

Banking Units must maintain the Liquidity Coverage Ratio as specified by the Authority. An IBU may have its Parent Bank maintain that ratio only with the Authority's prior approval. The Net Stable Funding Ratio applies when determined by the Authority and must then be maintained by the Banking Unit. An IBU may instead have its Parent Bank maintain the Net Stable Funding Ratio, subject to prior approval.