The International Financial Services Centres Authority (IFSCA) on April 05, 2024, issued a notification regarding The IFSCA Banking Handbook Prudential Directions- V 5.0 (PRU).
The following has been stated-
•These prudential rules apply to IBUs established and operating in IFSC as branches, of Banking Companies1 regulated by their respective Home Regulators.
•Under the extant IFSCA Banking Regulations, an IBU can be set up and operate only as a branch of a Banking Company that is regulated by its Home Regulator.
•In these rules, a requirement for an IBU to have a policy in respect of managing various risks or on other aspects shall also imply a requirement for such an IBU to have suitable procedures, systems, processes, controls and limits needed to give effect to the policy.
•An IBU may choose to adopt the policy followed by its Banking Company or may use a different policy, duly approved by the Board or the Governing Body. In either case the policy followed by the IBU must be able to ensure compliance with the prudential requirements – both quantitative as well as non-quantitative, prescribed under the Home Regulations as well as the IFSCA Regulations and Rules, wherever applicable.
•The Governing Body of the IBU shall be responsible for the IBU’s compliance with the principles and requirements set out in these rules and other prudential requirements – both quantitative as well as non-quantitative, prescribed under the Home Regulations.
