The International Financial Services Centres Authority (IFSCA) in collaboration with the Reserve Bank of India has made a significant decision regarding the allocation of Indian Financial System Code (IFSC code) to International Banking Units (IBUs). This move aims to streamline and regulate cross-border remittances through a standardized process.
1. Procedure for IFSC Code Allocation: IBUs are required to submit applications for issuance, deletion, or modification of IFSC codes to IFSCA. The detailed requirements for each application are outlined in Annex 1.
2. Communication and Conditions: IFSCA will communicate the success or failure of the application to IBUs along with any applicable conditions. The issued IFSC codes are exclusively for cross-border remittances and must be used in relevant fields of cross-border payment systems messages.
3. Restrictions on Domestic Usage: Emphasizing clarity, IFSC codes issued to IBUs are strictly prohibited for use in domestic payment systems. IBUs must ensure that these codes are not publicized to avoid confusion.
4. Closure Procedures: In case of IBU closure, an application for IFSC code deletion must be filed with IFSCA before the closure.
5. Application Submission: Applications can be submitted through email to [email protected], accompanied by a physical copy with a signed covering letter from the IBU Head.
6. Queries and Support: Any queries regarding the allocation process can be addressed through [email protected].
Conclusion: This development by IFSCA marks a crucial step in enhancing the efficiency and transparency of cross-border remittances through IBUs. The outlined procedures and restrictions aim to ensure the responsible use of IFSC codes and prevent any potential confusion in the financial ecosystem. IBUs are urged to adhere to the guidelines and communicate any queries through the provided channels for a seamless implementation of this allocation system.
****
International Financial Services Centres Authority
IFSCA-FMPP0BR/9/2023/Banking/1 Dated: November 28, 2023
To
All Banking Units Dear Sir/Madam,
Subject: Allocation of Indian Financial System Code (IFSC code) to IBUs
1. It has been decided, in consultation with the Reserve Bank of India, to allocate IFSC codes to IBUs.
2. IBUs are required to follow the following procedure for obtaining IFSC code:
i. IBUs shall make an application for issuance/deletion/modification of IFSC code to The details required to submitted along with each application is given in Annex 1.
ii. IFSCA shall communicate to the IBU whether their application for issuance/deletion/modification has been successful or not along with the applicable conditions.
iii. The IFSC code issued to the IBUs shall be used only for the remitters to undertake cross border remittances to IBUs for mentioning in the relevant field of cross border payment systems message where IFSC code is a mandatory
iv. The IFSC code issued to the IBUs shall not be used in domestic payment systems. In order to prevent any confusion, IBUs shall inform their parent banks to ensure that these codes are not advertised to the public.
v. In case of closure of an IBU, the concerned IBU shall file an application for deletion of IFSC code to IFSCA prior to closure of the IBU.
3. The application may be submitted by email to [email protected] (with the data in Annex 1 included in an excel sheet) followed by physical copy of the The application should be accompanied by a covering letter making the request signed by the IBU Head.
4. Any queries in this regard may be submitted through [email protected].
Yours faithfully
(Supriyo Bhattacharjee)
Chief General Manager
Department of Banking Regulation and Development
Annex 1
Details required to be submitted along with the application
1. Request type (Issuance, Deletion, Modification)
2. Purpose of Request
3. Name of Parent Bank
4. IFSC of the Bank in Domestic Payment Systems
5. IBU Name
6. Branch Name
7. Address
8. Contact Name
9. Contact Number
10. Email ID
