{"id":7577,"date":"2024-07-13T17:59:07","date_gmt":"2024-07-13T17:59:07","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=7577"},"modified":"2024-07-13T18:00:06","modified_gmt":"2024-07-13T18:00:06","slug":"rbi-allows-resident-indians-to-open-fca-account-in-gift-city","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/rbi-allows-resident-indians-to-open-fca-account-in-gift-city\/","title":{"rendered":"RBI allows resident Indians to open FCA account in Gift City"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-7578\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/07\/Gift-City-.jpg\" alt=\"RBI allows resident Indians to open foreign currency accounts in Gift City\" width=\"906\" height=\"1409\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/07\/Gift-City-.jpg 823w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/07\/Gift-City--193x300.jpg 193w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/07\/Gift-City--658x1024.jpg 658w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/07\/Gift-City--768x1194.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/07\/Gift-City--800x1244.jpg 800w\" sizes=\"(max-width: 906px) 100vw, 906px\" \/><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69db7cdad3f73\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69db7cdad3f73\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/rbi-allows-resident-indians-to-open-fca-account-in-gift-city\/#New_Feature_of_GIFT_CITY_Account_%E2%80%93_RBI_allows_resident_Indians_to_open_foreign_currency_accounts_in_Gift_City\" title=\"New Feature of GIFT CITY Account \u2013 RBI allows resident Indians to open foreign currency accounts in Gift City\">New Feature of GIFT CITY Account \u2013 RBI allows resident Indians to open foreign currency accounts in Gift City<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/rbi-allows-resident-indians-to-open-fca-account-in-gift-city\/#RBI_allows_resident_Indians_to_open_FCA_in_Gift_City\" title=\" RBI allows resident Indians to open FCA in Gift City\"> RBI allows resident Indians to open FCA in Gift City<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/rbi-allows-resident-indians-to-open-fca-account-in-gift-city\/#Resident_Indians_allowed_activity_in_Gift_City\" title=\"Resident Indians allowed activity in Gift City\">Resident Indians allowed activity in Gift City<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/rbi-allows-resident-indians-to-open-fca-account-in-gift-city\/#Assistance_or_Services_Offered_by_an_IFSC\" title=\"Assistance or Services Offered by an IFSC\">Assistance or Services Offered by an IFSC<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"New_Feature_of_GIFT_CITY_Account_%E2%80%93_RBI_allows_resident_Indians_to_open_foreign_currency_accounts_in_Gift_City\"><\/span><span style=\"color: #000080;\"><strong>New Feature of GIFT CITY Account \u2013 RBI allows resident Indians to open foreign currency accounts in Gift City<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The recent liberalization by the Reserve Bank of India now allows resident Indians to open foreign currency accounts in Gift City, located in the International Financial Services Centres, under the Liberalized Remittances Scheme. This expansion permits a wider range of financial activities, including:<\/p>\n<ul>\n<li>Buying Property Abroad: Funds can be utilized for acquiring immovable property overseas.<\/li>\n<li>Purchasing Insurance: foreign currency accounts can be used to buy insurance policies.<\/li>\n<li>Sending Gifts Abroad: Residents can now use their foreign currency accounts in IFSCs to send gifts to friends and relatives abroad.<\/li>\n<li>Education Loans: Funds from the foreign currency accounts can be used to pay for education loans.<\/li>\n<li>Overseas Travel: The accounts can also be used to fund travel abroad.<\/li>\n<li>Fixed Deposits: Residents can make fixed deposits in foreign currencies.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"RBI_allows_resident_Indians_to_open_FCA_in_Gift_City\"><\/span><span style=\"color: #000080;\"><strong> RBI allows resident Indians to open FCA in Gift City<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>With this bold move, GIFT IFSC is now in line with major international financial hubs, enabling local investors to use our platform for a greater range of international investments and expenses, according to Tapan Ray, MD and Group CEO of GIFT City. &#8220;By clarifying the use of LRS for investments and enabling transactions like insurance and education loan payments in foreign currency, the RBI has significantly enhanced the attractiveness and utility of GIFT IFSC.&#8221;<\/p>\n<p>This liberalization allows resident individuals to use their funds for a broader range of financial services and products offered by International Financial Services Centres. \u00a0This change benefits IFSC banks and life insurance companies by providing more international investment opportunities for Indian residents.<\/p>\n<p>GIFT City&#8217;s IFSC offers a favourable atmosphere for global financial operations With its regulatory and tax benefits, which benefits both foreign investors and non-resident individuals. However, while investing through the IFSC, resident Indians are subject to restrictions and reporting obligations.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Resident_Indians_allowed_activity_in_Gift_City\"><\/span><span style=\"color: #000080;\"><strong>Resident Indians allowed activity in Gift City<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The RBI&#8217;s notification indicates that authorized persons may facilitate remittances for all permissible purposes under Liberalized Remittances Scheme to International Financial Services Centres for any current or capital account transactions. This applies not only within IFSCs but also in any other foreign jurisdiction through an foreign currency accounts held in IFSCs. The permissible purposes include:<\/p>\n<ul>\n<li>&#8211; Gifts and donations<\/li>\n<li>&#8211; Acquisition of immovable property abroad<\/li>\n<li>&#8211; Overseas education and medical treatment<\/li>\n<li>&#8211; Private visits abroad<\/li>\n<li>&#8211; Maintenance of relatives abroad<\/li>\n<li>&#8211; Overseas portfolio investments<\/li>\n<\/ul>\n<p>Previously, such accounts were limited to investing in foreign securities at IFSCs and paying fees for education to foreign universities or institutions in International Financial Services Centres. This expansion represents a significant broadening of the Liberalized Remittances Scheme, offering more flexibility &amp; opportunities for resident Indians to engage in international financial activities.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Assistance_or_Services_Offered_by_an_IFSC\"><\/span><span style=\"color: #000080;\">Assistance or Services Offered by an IFSC<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>\u2022 Cross-border tax liability optimisation services and global tax management, which present an opportunity for financial intermediaries, accounting companies, and legal practices.<br \/>\n\u2022 Services for transnational firms on mergers and acquisitions.<br \/>\n\u2022 Services for Fundraising for Governments, Businesses, and Individuals.<br \/>\n\u2022 Global portfolio diversification and asset management services for mutual funds, insurance companies, and pension funds.<br \/>\n\u2022 Risk Management Services for Operations encompassing both reinsurance and insurance.<br \/>\n\u2022 Comprehensive wealth management solutions and wealth management.<br \/>\n\u2022 Services for Corporate Treasury Management Operations involving asset-liability matching, fund-raising, and the investment and management of liquidity.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New Feature of GIFT CITY Account \u2013 RBI allows resident Indians to open foreign currency accounts in Gift City The recent liberalization by the Reserve Bank of India now allows resident Indians to open foreign currency accounts in Gift City, located in the International Financial Services Centres, under the Liberalized Remittances Scheme. This expansion permits &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[695],"tags":[1092],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/7577"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=7577"}],"version-history":[{"count":2,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/7577\/revisions"}],"predecessor-version":[{"id":7580,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/7577\/revisions\/7580"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=7577"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=7577"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=7577"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}