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Gift City Legal Alerts

GIFT City Update – Amendment to the ‘Directions to IBUs for operations of the Foreign Currency Accounts of Indian resident individuals opened under the Liberalised Remittance Scheme’

GIFT City Update – Fee Structure for KYC Registration Agencies

The International Financial Services Centres Authority (“IFSCA”), in exercise of powers conferred by Section 12 and Section 13 of the International Financial Services Centres Authority Act 2019, vide Circular No. IFSCA-FMPP0BR/1/2021-Banking-Part(1)/3,[1] dated June 23, 2025, issued amendments to the directions governing the operations of Foreign Currency Accounts (“FCAs”) of Indian resident individuals maintained with International Banking Units (“IBUs”) under the Liberalised Remittance Scheme (“LRS”).

IBUs shall now be required to obtain a declaration from Resident Individuals (RIs) confirming that any amount spent from their FCA for availing financial services or financial products in an International Financial Services Centre is in line with the purpose initially declared at the time of remittance under LRS or is otherwise permitted under the scheme.

Similarly, where funds are being remitted from the FCA, the individual must confirm that the usage aligns with the originally declared purpose or with permissible uses under LRS. The amendment strengthens compliance requirements for IBUs and promotes transparent use of funds remitted under LRS.


[1]https://ifsca.gov.in/CommonDirect/GetFileView?id=f4ac1b5b4a9f69ca6f378d84bb48d371&fileName=Amendatory_Circular_Operations_of_the_FCA_of_RIs_opened_under_LRS_20250623_0457.pdf