Reserve Bank's Decision On LRS Boosts Appeal Of GIFT IFSC, Says CEO
The RBI's decision will bolster GIFT IFSC's role as a leading international financial services hub, Tapan Ray said.
The Reserve Bank of India has significantly enhanced the attractiveness and utility of Gujarat International Finance Tech-city's International Financial Services Centre by clarifying the use of Liberalised Remittance Scheme for investments and enabling transactions like insurance and education loan payments in foreign currency, said GIFT City Managing Director and Group Chief Executive Officer Tapan Ray on Thursday.
GIFT city, located in Gandhinagar, has been envisaged as an integrated hub for financial and technology services, not just for India but for the world. India's maiden International Financial Services Centre has been set up in GIFT City.
It has been decided that 'authorised persons' may facilitate remittances for all permissible purposes under LRS to IFSCs, for availing financial services or financial products, as per the International Financial Services Centres Authority Act, 2019 within IFSCs, the RBI said.
"We at GIFT IFSC welcome the Reserve Bank of India's recent circular expanding the scope of the LRS. This decisive move aligns GIFT IFSC with other global financial centres, allowing resident investors to leverage our platform for a wider range of overseas investments and expenditures," Ray said.
The RBI's decision will bolster GIFT IFSC's role as a leading international financial services hub, he said.
The central bank's decision to allow forex accounts in the GIFT City, into which money can be remitted for all purposes permitted under the LRS, is a significant step towards enhancing India's international financial ecosystem, said Narinder Wadhwa, managing director at SKI Capital.
(With inputs from PTI).
