Indian residents can now take advantage of the liberalised remittances scheme (LRS) to open foreign currency accounts (FCA) at Gift City under the liberalised remittances scheme (LRS) for various purposes such as gifting to friends abroad, purchasing property overseas, buying insurance, making fixed deposits, and funding education loans as well as overseas travel. 

The Reserve Bank of India (RBI) has introduced new rules that make it easier for resident Indians to open foreign currency accounts at International Financial Services Centres (IFSCs) under the LRS.

The RBI has allowed authorised persons to facilitate remittances and avail themselves of financial services within IFSCs. It also permitted current or capital account transactions in foreign jurisdictions through a foreign currency account held in IFSCs. 

Resident individuals can now open foreign currency accounts in GIFT IFSC for these purposes. This move will provide greater flexibility for Indian residents to manage foreign exchange transactions and facilitate seamless remittances.

Tapan Ray, the Managing Director and Group CEO of GIFT City, expressed his support for this development, stating that it brings GIFT IFSC in line with other global financial centres and expands the opportunities for resident investors to utilise the platform for a wider range of overseas investments and expenditures. 

He also emphasised that the RBI’s clarification on the use of LRS for investments and the facilitation of transactions such as insurance and education loan payments in foreign currency has significantly enhanced the appeal and utility of GIFT IFSC.

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