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The International Financial Services Centres Authority (IFSCA) today allowed Banking Units (BUs) to transfer assets to/from other financial institutions, persons resident in India and persons resident outside India through any internationally recognised standard risk participation agreement. Tran
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FAQ :
The IFSCA has permitted Banking Units (BUs) to transfer assets to and from other financial institutions, persons resident in India, and persons resident outside India.
Asset transfers can occur through any internationally recognised standard risk participation agreement.
Yes, transferring assets through risk participation agreements is a common practice in many jurisdictions, particularly in trade finance.
A risk participation agreement is a bilateral contract between two institutions, a buying and a selling entity, used for undertaking risk participation.
This decision is expected to encourage the participation of foreign currency assets through BUs in IFSC, rather than through banks in foreign jurisdictions.
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