Brief Overview:
IBUs can now deal on international payment systems for transactions with banks and financial institutions outside the IFSC without prior approval.
Technical Details:
If an international payment system enables IBUs to process transactions among themselves, affecting domestic (IFSC) payments, it must first secure authorization from the IFSCA in accordance with the Payment and Settlement Systems Act, 2007.
IBUs are required to review their current participation in international payment systems, ensure compliance with these new policies, and report their adherence to the Department of Banking Supervision within 30 days.
JC takeaway:
This circular is a step towards balancing global financial integration with appropriate oversight to ensure IFSC transactions operate within regulatory frameworks.
For further details, please see:
International Financial Services Centres Authority
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