17 C
Lucknow
March 5, 2024
The Hona News
Nation

RBI Permits Indian Banks in GIFT-IFSC for Bullion Exchange Trading and Special Category Client Status



Last Updated: Feb 09, 2024
9:33PM





File Pic



The Reserve Bank of India (RBI) today informed that it has allowed the branches of Indian banks in GIFT-IFSC to act as a Trading Member or Trading and Clearing Member of International Bullion Exchange IFSC Ltd.

Further, the RBI said it has also allowed the Indian banks authorised to import gold or silver to act as Special Category Client (SCC) International Bullion Exchange.

In its circular, the apex bank said the provisions shall be effective from the date of this circular. It is applicable to all Scheduled Commercial Banks other than Regional Rural Banks.

As per the circular, the RBI said the Trading Member or Trading and Clearing Member shall execute trades only on behalf of clients without proprietary trading.

RBI said the SCC shall execute only buy trades on behalf of clients. The SCCs will appoint one of the IFSC Banking Units (IBUs) to act as clearing member on their behalf.

For Trading Member (TM) or Trading and Clearing Member (TCM) activities, the parent bank shall seek a No Objection Certificate (NOC) from the Reserve Bank prior to its branch/subsidiary/joint venture in GIFT IFSC seeking TM/TCM status on International Bullion Exchange IFSC.

The release further said, an eligible bank shall, with prior approval of its Board, make an application to the Department of Regulation, Reserve Bank of India with details of its proposed business plan as a TM or TCM for facilitating client trade along with particulars of the risk management architecture.

The RBI said, banks authorized to import gold/silver can undertake the activities of an SCC by sending prior intimation to the Department of Regulation, Reserve Bank of India.









Source link

Related posts

Government introduces Jammu and Kashmir Reorganisation (Second Amendment) Bill, 2023

asdavi92

Eastern Command Investiture Ceremony 2024 organised at Bengdubi Military Station

asdavi92

Former VP Venkaiah Naidu stresses the need to produce quality and safe chicken for better human health

asdavi92

Leave a Comment