Modifying the norms for setting up IFSC banking units, RBI said on Thursday that the parent bank will be required to provide and maintain at all times a minimum capital of $20 million to its IBU.
In April 2015, the Reserve Bank had formulated a scheme for setting up of International Financial Services Centres (IFSC) Banking Units (IBUs) by banks in IFSCs.
RBI said modification has been made based on suggestions from stakeholders to consider minimum prescribed regulatory capital at the parent level rather than at the IBU level.
“With a view to enabling IBUs to start their operations, the parent bank will be required to provide a minimum capital of $20 million or equivalent in any foreign currency to its IBU which should be maintained at all times,” it said in a notification.
However, it added the minimum prescribed regulatory capital, including for the exposures of the IBU, should be maintained on an on-going basis at the parent level.