The Reserve Bank of India (RBI) has recently broadened the scope of remittances to International Financial Services Centre (IFSC) under the Liberalised Remittance Scheme (LRS).
About the IFSC:
- An IFSC serves as a financial hub that caters to customers beyond its own jurisdiction, offering financial products, services, and institutions. They are also known as Offshore Financial Centers.
- GIFT IFSC, India’s first IFSC, was established under the Special Economic Zone Act, 2005 and became operational in 2015.
- The IFSC Authority, a statutory body created by the IFSC Authority Act, 2019, was established in 2020 to regulate these centers.
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Frequently Asked Questions:
What is the purpose of an International Financial Services Centre (IFSC)?
An IFSC serves as a financial hub catering to customers beyond its jurisdiction, offering a wide range of financial products, services, and institutions. These centers are also known as Offshore Financial Centers.
When was GIFT IFSC, India’s first IFSC, established?
GIFT IFSC, India’s first IFSC, was established under the Special Economic Zone Act, 2005, and became operational in 2015.
What is the role of the IFSC Authority?
The IFSC Authority, established in 2020 under the IFSC Authority Act, 2019, is a statutory body responsible for regulating International Financial Services Centres in India.