IFSCA Directs IBUs to Report Foreign Currency Vostro Balances in BAL Statement

Circular e.File No. IFSCA-FMPP0BR/13/2023-Banking, Dated 11.11.2025

1. Background

The International Financial Services Centres Authority (IFSCA) has issued directions to all IFSC Banking Units (IBUs) to ensure greater accuracy and comprehensiveness in their periodic regulatory reporting. The instructions relate to the treatment and reporting of balances maintained in foreign currency accounts of overseas banks under Vostro accounts.

2. Key Requirement

Under the new directive, IBUs are required to:

• Include balances in foreign currency Vostro accounts of overseas banks
• Report these balances in their fortnightly Banking Asset Liability (BAL) statement,
• The statement is to be submitted through the Balance of Payments (BoP) portal.

This revision aims to enhance the transparency and completeness of cross-border banking data reported by IBUs operating within the IFSC framework.

3. Effective Date

The revised reporting format will apply from the second fortnight of November 2025 onwards.

4. Compliance and Enforcement

IFSCA has emphasised that:

• Any failure to furnish accurate or timely information will be viewed seriously, and
• Appropriate regulatory action may be initiated against non-compliant entities.

The directive underscores IFSCA’s focus on ensuring robust supervisory oversight and data integrity within IFSC banking operations.

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