IFSCA (Banking) (Amendment) Regulations, 2022

INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY
NOTIFICATION
Gandhinagar, the 29th June, 2022

INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY (BANKING) (AMENDMENT) REGULATIONS, 2022

IFSCA/2022-23/GN/REG025.—In exercise of the powers conferred by sub-section (1) of Section 28 read with sub-section (1) of Section 12 and sub-section (1) of Section 13 of the International Financial Services Centres Authority Act, 2019, the International Financial Services Centres Authority hereby makes the following regulations further to amend the International Financial Services Centres Authority (Banking) Regulations, 2020, namely: –

1. (1) These regulations may be called the International Financial Services Centres Authority (Banking) (Amendment) Regulations, 2022.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the International Financial Services Centres Authority (Banking) Regulations, 2020 (hereinafter referred to as the Principal Regulations), clause (c) of sub-regulation (1) of regulation 2, shall be substituted with the following, namely,—

“(c) “Banking Unit” or “IFSC Banking Unit” means a financial institution under clause (c) of sub-section (1) of Section 3 of the Act that is licensed by the Authority to undertake permissible activities under these regulations;”

3. In the Principal Regulations, after clause (d) of sub-regulation (1) of regulation 2, following clauses shall be inserted, namely,—

“(da) “Global Administrative Office” or “GAO” means a financial institution set up by its Parent Bank in IFSC for undertaking any one or more of the following activities, namely:

(i) managing, administering, or coordinating operations of the Parent Bank or any of the Group entities either in IFSC or outside IFSC;

(ii) providing support services to Parent Bank or any of the Group entities for execution of the permitted activities either in IFSC or outside IFSC

Provided that the activities pertaining to a jurisdiction outside IFSC shall be subject to the directions and instructions of the relevant regulator in the said jurisdiction.

“(db) “Group entities” means any holding company, subsidiaries, branches or any other entity, in whatever legal form, through which the Parent bank undertakes its operations or permitted activities.

4. In the Principal Regulations, clause (j) of sub-regulation (1) of regulation 2, shall be substituted with the following, namely,—

“(j) “Parent Bank” means a Foreign Bank as defined under sub-regulation (d), or an Indian Bank as defined under sub-regulation (f), or both, that intends to, or has set up a Banking Unit or Representative Office or Regional Administrative Office;

5. In the Principal Regulations, after clause (l) of sub-regulation (1) of regulation 2, following clause shall be inserted, namely,—

“(la) “Representative Office” or “RO” means a financial institution set up by its Parent Bank in IFSC for undertaking any one or more of the following activities, namely:

(i) marketing of financial products;

(ii) collection of data;

(iii) carrying out of outreach operations.”

6. In the Principal Regulations, after clause (o) of sub-regulation (1) of regulation 2, following clause shall be inserted, namely,—

“(oa) “Support services” shall mean the ancillary activities and processes required for execution of the permitted activities”

7. In the Principal Regulations, sub regulation 9 of regulation 3, shall be substituted with the following, namely:

“(9) A Parent Bank may set up its Representative Office or Global Administrative Office in IFSC under a suitable mechanism, subject to such conditions as may be specified by the Authority.”

INJETI SRINIVAS, Chairperson

[ADVT.-III/4/Exty./152/2022-23]

Note:

1. The International Financial Services Centres Authority (Banking) Regulations, 2020 were published in the Gazette of India Extraordinary vide notification No. IFSCA/2020-21/GN/REG004 on 20th November 2020, to be read with the Corrigendum published in the Gazette of India Extraordinary vide notification No. CG-MH-E-12052021-226980, on 12th May, 2021;

2. The International Financial Services Centres Authority (Banking) (Amendment) Regulations, 2021 were published in the Gazette of India Extraordinary vide notification No. IFSCA/2020-21/GN/REG009 on 25th March, 2021; and

3. The International Financial Services Centres Authority (Banking) (Amendment) Regulations, 2021 were published in the Gazette of India Extraordinary vide notification No. IFSCA/2021-22/GN/REG013 on 05th July, 2021.