New Register here for RBI, SEBI & NABARD strategy workshop! April 9 at 7 PM

    Question

    What is the currency for conducting business by the

    banking units as per the IFSCA (Banking) Regulations, 2020?
    A Indian Rupees Correct Answer Incorrect Answer
    B Freely convertible Indian currencies Correct Answer Incorrect Answer
    C Freely convertible foreign currencies Correct Answer Incorrect Answer
    D At the discretion of the Banking Units Correct Answer Incorrect Answer
    E Freely nonconvertible foreign currencies Correct Answer Incorrect Answer

    Solution

    Rule 10. Currency for conducting business A Banking Unit shall conduct such business in freely convertible foreign currencies and with such persons, whether resident or otherwise, as may be specified by the Authority. Provided that a Banking Unit may be permitted to conduct such business in INR with such persons, whether resident or otherwise, as may be specified by the Authority, subject to settlement of the financial transaction in relation to such business in freely convertible foreign currency.

    Practice Next