- This will help to strengthen the financial markets in the IFSCs and will enable an opportunity for resident individuals to diversify their portfolios.
- In this regards, RBI has reviewed the guidelines on LRS and has thus allowed resident individuals to make remittances under LRS to IFSCs in India under the Special Economic Zone Act, 2005.
- The conditions for same are: (1) Remittance should be made only to invest in IFSCs in securities, other than those issued by entities/companies resident (outside IFSC) in India (2) Resident individual should open a non-interest bearing Foreign Currency Account (FCA) in IFSCs, to invest under LRS (3) Funds which are idle in the account for a period up to 15 days from the date of its receipt into the account shall be immediately repatriated to domestic INR account of the investor in India (4) Resident individual cannot settle any domestic transactions with other residents through these FCAs held in IFSCs.
- Static Part:
- HQ of RBI: Mumbai
