Banks seek relief from sustainable lending norms for FCNR(B) loans
Reported by Economic Times Industry, not nibnow. We are not the publisher of this story, only the source is.
Banks are seeking regulatory relief after a surge in Foreign Currency Non-Resident deposits at GIFT City, which could alter how international banking units meet sustainable lending targets.
Banks have approached the International Financial Services Centres Authority regarding sustainable lending targets for international banking units. The request stems from a significant rise in Foreign Currency Non-Resident deposits at GIFT City. These deposits have surged following the Reserve Bank of India's swap facility introduced in June. It is expected that the IFSCA may provide similar exemptions as the RBI has done before.
Foreign Currency Non-Resident deposits allow nonresident Indians to maintain foreign currency accounts in India. The International Financial Services Centres Authority regulates financial services in designated zones like GIFT City.
- •Whether the International Financial Services Centres Authority grants exemptions similar to those provided by the Reserve Bank of India.
- •Impact of regulatory decisions on sustainable lending targets for international banking units.