The International Financial Services Centres Authority (IFSCA), through its circular dated May 1, 2026, directed all financial institutions to temporarily refrain from acting on certain clarifications provided in the FAQs on Annual Return on Foreign Liabilities and Assets (FLA) issued under the Foreign Exchange Management Act, 1999 by the Reserve Bank of India. Specifically, the Authority referred to Questions 43, 44, and 45 of the updated FAQs (March 25, 2026), stating that these matters are currently under discussion between IFSCA and RBI. Until further instructions are issued, financial institutions have been advised to hold off on implementing or relying on the said clarifications. The circular, issued under Section 12 of the International Financial Services Centres Authority Act, 2019, reflects a cautious regulatory approach to ensure consistency and clarity in FLA reporting obligations. It underscores the importance of regulatory coordination and compliance discipline within IFSC entities.
International Financial Services Centres Authority
Circular No. IFSCA-BDev0DEAC/1/2026 Dated: May 1, 2026
To,
All Financial Institutions
FAQs on Annual Return on Foreign Liabilities and Assets (FLA) under FEMA, 1999 issued by the Reserve Bank of India (updated as on March 25, 2026)
1. Please refer to question nos. 43, 44 and 45 and replies thereto of the FAQs on Annual Return on Foreign Liabilities and Assets (FLA) under FEMA, 1999 issued by the Reserve Bank of India (updated as on March 25, 2026).
2. Financial Institutions are advised that the contents of the said FAQs are being discussed with the Reserve Bank of India.
3. Financial Institutions are further advised to await further instructions from the Authority before taking any action on the matter.
4. This circular is being issued in exercise of the powers of the Authority under section 12 of the International Financial Services Act, 2019.
Yours faithfully,
Sd/-
Supriyo Bhattacharjee
(Chief General Manager)
