Rupee transactions will not be allowed in international centres: RBI
2 April 2015 2:12 AM IST
Banking units within the IFSCs will also have to follow the same rules
At present, the review of the base rate does not have a fixed schedule; Reserve Bank of India (Photo: PTI)
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 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.
( Source : reuters )
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