Which of the following conditions are true with regard to issuance of debit cards by IBUs (international Banking Units)

(i)            IBUs may issue Debit cards to their customers holding a Current or  Savings account with them

(ii)           Withdrawal of cash in IFSC, using Debit cards issued by IBUs, is not  permitted

(iii)          Withdrawal of cash using Debit cards issued by IBUs, in  jurisdictions outside IFSC, is also not permitted

(iv) Debit cards issued by IBUs to a person resident in India shall not be  used for accessing funds (through whatever means) from the bank  accounts, if any, held by such person in the domestic territory

Solution

Conditions for issuing Debit card by IBUs i. IBUs may issue Debit cards to their customers holding a Current or Savings account with them. ii. Withdrawal of cash in IFSC, using Debit cards issued by IBUs, is not permitted. Withdrawal of cash using Debit cards issued by IBUs, in jurisdictions outside IFSC, is permitted subject to the rules and regulations of the said jurisdiction . iii. All other transactions including making online payments, undertaking PoS transactions, funds transfer etc. using Debit cards issued by IBUsis permitted. iv. Debit cards issued by IBUs to a person resident in India shall not be used for accessing funds (through whatever means) from the bank accounts, if any, held by such person in the domestic territory. v. IBUs shall ensure that transactions permitted to be undertaken through Debit cards issued to persons resident in India are compliant with the requirements of the Foreign Exchange Management Acr,1999