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.

Banking Units operating as an IBU or IBC must comply with norms and guidelines specified by the Authority from time to time. An IBU must also comply with directions and instructions issued by the Home Regulator of its Parent Bank, unless otherwise specified by the Authority. The framework replaced an earlier requirement concerning directions applicable to IFSC Banking Units and later confined Home Regulator compliance specifically to IBUs.

International Financial Services Centre banking operations require Indian Banks and Foreign Banks to obtain a licence or permission before establishing a Banking Unit. A Banking Unit may operate as an IFSC Banking Unit or IFSC Banking Company. IBU applicants require prescribed capital, home-regulator clearance, and a liquidity undertaking, while IBC applicants require prescribed capital and home-regulator clearance for establishment as a subsidiary. Applications may be withdrawn before approval, and proposed refusals allow written submissions before a reasoned rejection.

Regulation 2 defines the operational framework for Banking Units in an International Financial Services Centre. Banking Units may operate as IFSC Banking Companies, where established as subsidiary companies, or IFSC Banking Units, where established as branches of Parent Banks. It also defines Global Administrative Offices, Representative Offices, referral services, support services, group entities, and Home Regulators. Global Administrative Offices may coordinate operations and provide support services, subject to relevant overseas regulatory directions for activities outside the IFSC. Undefined terms carry meanings assigned under governing legislation and related rules or regulations.

International Financial Services Centres Authority (Banking) Regulations, 2020 establish a regulatory framework for banking and investment activities in International Financial Services Centres. Made under powers conferred by the International Financial Services Centres Authority Act, 2019, the regulations take effect upon publication in the Official Gazette.

Organic grocery delivery is positioned as requiring a proof-led supply chain rather than a speed-driven quick-commerce model. Delivery convenience is intended to operate without displacing verification processes supporting organic-product claims. Batch-level laboratory testing for banned chemical and pesticide residues forms a pre-sale control within the supply chain, while QR-code access to product laboratory reports is intended to give customers traceable evidence of testing. The model combines app-based doorstep delivery with certified sourcing, manufacturing controls, residue testing and consumer-facing verification.

Bank guarantee commission paid before 1 January 2013 did not attract tax deduction requirements applicable to commission or brokerage because those requirements depend on a principal-agent relationship. A bank issuing a guarantee gives an independent undertaking to the beneficiary for consideration and acts on a principal-to-principal basis, rather than as the payer's agent. The payment is therefore a banking-service fee, not commission or brokerage subject to tax deduction. A later exemption for specified payments to banks did not change this characterisation for the earlier period. Consequently, disallowance for non-deduction of tax from bank guarantee fees was unsustainable.

Invitees at Authority meetings may be permitted where their presence is desired for advice or consultation. The Chairperson may invite such person to attend after giving prior intimation to the other members.