IFSCA signs pact with RBI to supervise regulated entities

IFSCA signs pact with RBI to supervise regulated entities

The Memorandum of Understanding facilitates technical cooperation and the exchange of information

The International Financial Services Centres Authority (IFSCA) has announced signing an agreement with the Reserve Bank of India (RBI) for collaboration in the field of regulation and supervision of regulated entities in their respective jurisdictions.

In its statement, the IFSCA said, "The MoU opens up avenues for cooperation between the two regulators, thereby strengthening the safety, stability and soundness of respective financial ecosystems and nurturing environments conducive to optimal business development and economic growth,"

IFSCA is a unified regulator responsible for the development and regulation of financial products, financial services and financial institutions in the International Financial Services Centres (IFSCs) established in India. It is entrusted with the responsibility of regulation and supervision of authorized banks and non-banking financial institutions operating in such IFSCs.

A statutory authority established under the IFSCA Act 2019, it is headquartered at Gujarat International Finance Tec-City in Gandhinagar.

The GIFT IFSC is currently the maiden international financial services centre in India. Prior to the establishment of IFSCA, the domestic financial regulators, including RBI, Securities and Exchange Board of India (SEBI), Pension Fund Regulatory and Development Authority (PFRDA), and Insurance Regulatory and Development Authority (IRDAI) regulated the business in IFSC.

RBI is the central bank and monetary authority of India carrying the regulation and supervision of banks and non-banking financial institutions as well as undertaking other functions, and exercising powers in accordance with various statutes.