Notification

  • Not Able to Find What You’re Looking For? Speak to us directly! Our experts are here to guide you through any queries or challenges.

    Speak to Us

Resident Individuals to open Foreign Currency bank Accounts (FCA) with IBUs in IFSCs

Get in touch with us

    Your information is confidential and secure

    IFSCA vide circular dated 11 July 2024, allowed Resident Individuals to open Foreign Currency bank Accounts (FCA) with IBUs in IFSCs for all permitted capital and current account transactions. Further to the same, owing to operational challenges IBUs were unable to open FCA for Resident Individuals.

    Accordingly, in order to provide guidelines to IBUs for opening and maintaining FCAs for Resident Individuals, IFSCA issued a circular on 10 October 2024 providing certain clarifications.

    However, IFSCA has now issued an updated circular on 13 December 2024 superseding the earlier circular providing following key guidelines / clarifications:

    1) Resident individuals are permitted to deposit unutilized funds from their FCAs in Fixed Deposits, provided the tenure of such deposits does not exceed 180 days.

    2) Resident individuals are allowed to remit funds directly into their FCAs from locations other than onshore India provided that such remittance represents funds duly remitted earlier under LRS or income earned on the investments made from funds duly remitted earlier under LRS.

    3) IBUs are also encouraged to facilitate the opening of FCAs digitally through internet and mobile banking platforms, ensuring a smoother customer experience.

    These updates provide much-needed operational clarity for IBUs, ensuring smoother processes for FCA opening for resident individuals while aligning with IFSCA’s regulations and facilitating greater flexibility.

    Reach out to us at dhairya.c@treelife.in for a discussion.

    About the Author
    Treelife
    Treelife
    Treelife Team | support@treelife.in

    We are a legal and finance firm with a deep focus on the startup ecosystem. We offer a wide range of services, including Virtual CFO, Legal Support, Tax & Regulatory, and Global Expansion assistance.

    Our goal at Treelife is to provide you with peace of mind and ease in business.

    We Are Problem Solvers. And Take Accountability.

    Related Posts

    Compliance Calendar – July 2025 (Checklist & Deadlines)
    Compliance Calendar – July 2025 (Checklist & Deadlines)

    Sync with Google CalendarSync with Apple Calendar As we enter the second half of 2025, staying compliant with various financial,...

    Learn MoreLearn More
    Conversion of Partnership Firm to LLP – Complete Process
    Conversion of Partnership Firm to LLP – Complete Process

    Converting a Partnership Firm to a Limited Liability Partnership (LLP) is a strategic decision that offers several advantages for businesses...

    Learn MoreLearn More
    Memorandum of Association – MoA Clauses, Format & Types
    Memorandum of Association – MoA Clauses, Format & Types

    The Memorandum of Association (MOA) is one of the most essential documents in the company incorporation process, forming the foundation...

    Learn MoreLearn More

    For Customer Support

    Mumbai | Delhi |
    Bangalore | GIFT City

    Speak to Us!

    We respond within 60 minutes.

      Your information is confidential and secure

      For Customer Support

      Mumbai | Delhi |
      Bangalore | GIFT City

      Fill out the form to unlock the full report!

      Image