IFSCA on November 28, 2023 has announced the decision, in consultation with the Reserve Bank of India, to allocate IFSC codes to IBUs. IBUs are required to follow the following procedure for obtaining IFSC code:
- IBUs shall make an application for issuance/deletion/modification of IFSC code to IFSCA. The details required to submitted along with each application is given in Annex 1.
- IFSCA shall communicate to the IBU whether their application for issuance/deletion/modification has been successful or not along with the applicable conditions.
- The IFSC code issued to the IBUs shall be used only for the remitters to undertake cross border remittances to IBUs for mentioning in the relevant field of cross border payment systems message where IFSC code is a mandatory requirement.
- The IFSC code issued to the IBUs shall not be used in domestic payment systems. In order to prevent any confusion, IBUs shall inform their parent banks to ensure that these codes are not advertised to the public.
- In case of closure of an IBU, the concerned IBU shall file an application for deletion of IFSC code to IFSCA prior to closure of the IBU.
