RBI allows resident Indians to open foreign currency accounts in GIFT City:

 

1. RBI has issued circular under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999), for facilitating remittances to IFSCs.

2. Currently remittances under LRS to IFSCs are permitted only for making investments in IFSCs in securities except those issued by entities/companies resident in India (outside IFSC); and for payment of fees for education to foreign universities or foreign institutions in IFSCs for pursuing courses mentioned in the gazette notification no. SO 2374(E) dated May 23, 2022, issued by the Central Government.

3. On a review, 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; and all current or capital account transactions, in any other foreign jurisdiction (other than IFSCs) through an FCA held in IFSCs.

4. For these permissible purposes, resident individuals can open Foreign Currency Account (FCA) in IFSCs.