The International Financial Services Centres Authority (IFSCA), on November 5, 2026, issued Frequently Asked Questions (FAQs) clarifying the provisions of the IFSCA (Banking) Regulations, 2020, the IFSCA Banking Handbook, and circulars relating to internet banking services for IFSC Banking Units (IBUs).
The following has been stated:
The FAQs clarify that banking units in IFSCs may currently be established as branches of parent banks, subject to IFSCA licensing. The parent bank must maintain minimum regulatory capital of USD 20 million, obtain a No Objection Letter from its home regulator and comply with prescribed governance and prudential requirements.
The document also clarifies requirements relating to the governing body, permissible banking activities, AML/CFT and KYC compliance, outsourcing, liquidity requirements, fees, Global Administrative Offices and Representative Offices. IBUs must maintain a minimum Liquidity Coverage Ratio (LCR) of 100% and a Retail Deposit Reserve Ratio (RDRR) of 3% of applicable individual deposits.
For internet banking services, the FAQs clarify requirements concerning currency conversion rate displays, downloadable account statements, fintech API access, scheduled payouts, transaction validation and corporate user access management. It also clarifies that displaying live currency conversion rates and applicable spreads has been made non-mandatory, following the amendment dated June 30, 2026.
