The International Financial Services Centres Authority (IFSCA) on August 25, 2022, issued a notification regarding the issuance of Debit Cards by IFSC Banking Units (IBUs). The authority has issued certain directions for the issuance of Debit Cards by IBUs under section 35A of the Banking Regulation Act,1949 and section13(1) of the International Financial Services Centres Authority Act, 2019.
The following directions have been stated:
• The IBUs may issue Debit cards to their customers holding a Current or Savings account with them.
• The Withdrawal of cash in IFSC, using Debit cards issued by IBUs, is not permitted. Withdrawal of cash using Debit cards issued by IBUs, in jurisdictions outside IFSC, is permitted subject to the rules and regulations of the said jurisdiction.
• All other transactions including making online payments, undertaking PoS transactions, funds transfers etc. using Debit cards issued by IBUS is permitted.
• The Debit cards issued by IBUS to a person resident in India shall not be used for accessing funds (through whatever means) from the bank accounts, if any, held by such person in the domestic territory.
• The IBUs shall ensure that transactions permitted to be undertaken through Debit cards issued to persons resident in India comply with the requirements of the FEMA, 1999.
[Notification No. 110/IFSCA/Banking Regulation/2022-23/3]
