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RBI Guidelines for Foreign Currency Accounts (FCA) under LRS

Type of Document: Notification

Relevant Act(s)/Rule(s): International Financial Services Centres Authority Act, 2019

Notification Date: 13th December 2024

Notification No.: F. No. IFSCA-FMPP0BR/1/2021-Banking-Part (1)/3

The Reserve Bank of India (RBI) has issued updated guidelines for International Banking Units (IBUs) on operating Foreign Currency Accounts (FCA) for resident individuals (RI):
1. IBUs can open FCAs under the Liberalised Remittance Scheme (LRS) as per the RBI circular dated July 10, 2024.
2. FCAs can also be used for purposes outside LRS, adhering to FEMA regulations.
3. IBUs must monitor remittances, ensure routing via authorized persons, and report FCA operations to IFSCA.
4. FCA funds cannot be used for domestic transactions and must comply with AML/KYC and FATF guidelines.

Notification Link: https://ifsca.gov.in/Viewer?Date=13%2F12%2F2024&Path=Document%2FLegal%2Frevised-circular-lrs_pdf

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