IFSCA publishes comments received on draft amendment to banking regulations

IFSCA issued a consultation paper seeking comments/views/suggestions from public on the draft IFSCA (Banking) (Amendment) Regulations, 2023 on May 29, 2023. The following suggestions are accepted by IFSCA:

1. Introducing the definition of “subsidiary company” in the regulations.
2. Maintenance of leverage ratio may continue to be applicable to an IFSC Banking Unit set-up as a branch.
3. Reserve requirements may need to be complied with by an IFSC Banking Unit set up as a branch or subsidiary.
4. There shall be no centralized deposit insurance scheme for deposits of a Banking Unit operating as a branch of the Parent bank.
5. Deposits of a Banking Unit operating as a Subsidiary company of the Parent bank shall be insured to
6. the extent provided by the DICGC Act, 1961.