Regulation and Supervision of Regulated Entities

About:

• The MoU facilitates technical cooperation and exchange of information.
• The agreement aims to strengthen the safety, stability and soundness of respective financial ecosystems, thereby ensuring conducive environments for optimal business development and economic growth.
• While RBI is the central bank and monetary authority of India, the International Financial Services Centres Authority is a unified regulator responsible for development and regulation of financial products, financial services and financial institutions in the International Financial Services Centre (s), established across the country.

International Financial Services Centres Authority (IFSCA):

• The International Financial Services Centres Authority (IFSCA) has been established on April 27, 2020 under the International Financial Services Centres Authority Act, 2019.
• It is headquartered at GIFT City, Gandhinagar in Gujarat.

Role of IFSCA:

• The IFSCA is a unified authority for the development and regulation of financial products, financial services and financial institutions in the International Financial Services Centre (IFSC) in India.
• At present, the GIFT IFSC is the maiden international financial services centre in India.
• Prior to the establishment of IFSCA, the domestic financial regulators, namely, RBI, SEBI, PFRDA and IRDAI regulated the business in IFSC.
• The main objective of the IFSCA is to develop a strong global connect and focus on the needs of the Indian economy as well as to serve as an international financial platform for the entire region and the global economy as a whole.