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

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  • Last Updated on 13 November, 2025

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Vostro account reporting

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.

Click Here To Read The Full Circular

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Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied