Participation of Indian Banks on India International Bullion Exchange IFSC Limited (IIBX)

Summary:

The Reserve Bank of India (RBI) has issued a circular (RBI/2023-24/120) to all Scheduled Commercial Banks (except Regional Rural Banks) allowing their branches, subsidiaries, or joint ventures in GIFT-IFSC to participate in the India International Bullion Exchange IFSC Limited (IIBX) as Trading Members (TM) and Trading and Clearing Members (TCM). Additionally, RBI has allowed Indian banks authorized to import gold/silver to operate as Special Category Clients (SCC) of IIBX.

Key highlights:

Indian banks can operate as TMs/TCMs on IIBX, executing trades only on behalf of clients
Banks authorized to import gold/silver can operate as SCCs on IIBX for import of gold/silver
* RBI has issued detailed instructions and guidelines for banks to follow, including risk management and procedures for application to RBI

Effective from the date of this circular, these instructions are applicable to all Scheduled Commercial Banks, except Regional Rural Banks.