Residents of India can now avail various facilities like FD in foreign currency, insurance from the comfort of their homes

Indian residents can open a gift foreign currency account in IFSC: People living in India can now open foreign currency accounts (FCAs) under the liberalised remittance scheme, with the help of which they can gift money to friends and relatives living abroad, purchase property abroad, get insurance, avail facilities like fixed deposits, one can repay education loan as well as fund foreign travel. The Reserve Bank has recently eased the rules for opening foreign currency accounts by Indians in International Financial Services Centres under LRS.

Before today's notification, such account holders were only allowed to invest in foreign securities in IFSC and pay fees for education in foreign universities or foreign institutions in IFSC. With this simplification by RBI, people living in India can open bank accounts in foreign currencies like dollars and start FDs in GIFT City.

GIFT IFSC will tie up with other global financial centres to provide a platform for Indian investors to invest and spend abroad. GIFT City MD and Group CEO Tapan Ray said transactions such as education loan payments, insurance can be done in foreign currency. RBI has increased the potential and attractiveness of GIFT IFSC. With this facility, people living in India will be able to avail a variety of financial services and products from IFSC. Insurance and fixed deposits can be started in foreign currency. GIFT IFSC will benefit IFSC banks and insurance companies providing international investment opportunities to Indians based in IFSC.

The purposes permitted under LRS include purchase of immovable property abroad, foreign portfolio investment, foreign travel, gifts/donations, maintenance of relatives abroad, education abroad, and money spent abroad for medical treatment.