The International Financial Services Centres Authority vide circular dated August 25, 2021 has allowed branches of Indian financial institutions operating in IFSC to offer financial products linked to Indian Rupee. The Reserve Bank of India has clarified that the definition of the term “overseas entity” in the Master Direction –Direct Investment by Residents in Joint Venture (JV) / Wholly Owned Subsidiary (WOS) Abroad shall not include branches of Indian banks and branches of other Indian financial institutions operating in IFSC.
Therefore, branches of Indian banks and branches of other Indian financial institutions operating in IFSC may, subject to the directions issued by the Authority, offer financial products linked to Indian Rupee.
