India central bank says rupee transactions will not be allowed in international centres
[MUMBAI] Banks which want to set up units within the special financial zones being created in India will only be allowed to transact in non-rupee currencies and will be exempt from reserve requirements, the Reserve Bank of India said on Wednesday.
The banking units within the so-called International Financial Services Centres (IFSCs) will also have to follow the same rules applicable to Indian banks regarding bad loans, provisioning, income recognition and asset classification, the RBI said.
The Indian government is setting up the first IFSC in Prime Minister Narendra Modi's home state, Gujarat, which will be known as Gujarat International Finance Tec-City (GIFT).
Each bank will be allowed to set up only one unit in each IFSC.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Rescue pup to meme star: the real-life ‘Dogecoin’ dog
Five new charges for money laundering accused Zhang Ruijin before his plead guilty mention
Bank of Japan keeps rates steady, projects inflation staying near 2% in coming years
Weak yen pressures Bank of Japan’s interest rate decision
Basel Committee adds climate risks to banking supervision standards
Crypto firm sues SEC to fend off oversight of Ethereum