New Delhi: The Reserve Bank has significantly improved the attractiveness and usefulness of GIFT IFSC by clarifying the use of LRS for investments and allowing transactions such as insurance and education loan payments in foreign currency, GIFT City CEO said on Thursday. and group CEO Tapan Ray.
GIFT City (Gujarat International Finance Tec-City), located in Gandhinagar, has been envisioned as an integrated financial and technology services hub not only for India but for the world. India's first International Financial Services Center (IFSC) has been established in GIFT City.
The Reserve Bank of India (RBI) on Wednesday issued a circular expanding the scope of remittance-related rules to International Financial Services Centers (IFSC) under the Liberalized Remittance Scheme (LRS).
The RBI said it has been decided that "authorized persons" can facilitate remittances for all purposes permitted under LRS to IFSCs for availing financial services or financial products under the International Financial Services Centers Authority Act, 2019. , within the IFSC.
"We at GIFT IFSC welcome the recent Reserve Bank of India circular expanding the scope of the LRS. This decisive move aligns GIFT IFSC with other global financial centres, allowing resident investors to leverage our platform for a range broader investment and spending abroad. he said.
By clarifying the use of LRS for investments and allowing transactions such as insurance and education loan payments in foreign currency, Ray said the central bank has significantly improved the attractiveness and usefulness of GIFT IFSC.
The RBI's decision will strengthen GIFT IFSC's role as a leading center for international financial services, he added.
Commenting on the RBI circular, Narinder Wadhwa, CEO, SKI Capital, said the central bank's decision to allow foreign exchange accounts in GIFT City, to which money can be sent for all purposes permitted under the LRS, is a step important towards the improvement of India's international financial system. ecosystem.
GIFT City (Gujarat International Finance Tec-City), located in Gandhinagar, has been envisioned as an integrated financial and technology services hub not only for India but for the world. India's first International Financial Services Center (IFSC) has been established in GIFT City.
The Reserve Bank of India (RBI) on Wednesday issued a circular expanding the scope of remittance-related rules to International Financial Services Centers (IFSC) under the Liberalized Remittance Scheme (LRS).
The RBI said it has been decided that "authorized persons" can facilitate remittances for all purposes permitted under LRS to IFSCs for availing financial services or financial products under the International Financial Services Centers Authority Act, 2019. , within the IFSC.
"We at GIFT IFSC welcome the recent Reserve Bank of India circular expanding the scope of the LRS. This decisive move aligns GIFT IFSC with other global financial centres, allowing resident investors to leverage our platform for a range broader investment and spending abroad. he said.
By clarifying the use of LRS for investments and allowing transactions such as insurance and education loan payments in foreign currency, Ray said the central bank has significantly improved the attractiveness and usefulness of GIFT IFSC.
The RBI's decision will strengthen GIFT IFSC's role as a leading center for international financial services, he added.
Commenting on the RBI circular, Narinder Wadhwa, CEO, SKI Capital, said the central bank's decision to allow foreign exchange accounts in GIFT City, to which money can be sent for all purposes permitted under the LRS, is a step important towards the improvement of India's international financial system. ecosystem.
