Chapter IV — General Provisions

Section 57A: Powers of Bank not to apply to International Financial Services Centre

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 57A excludes the application of specified RBI powers to an International Financial Services Centre to the extent those powers are exercisable by the International Financial Services Centres Authority under the IFSCA Act framework.

Operative provisionOfficial sources mappedProvision-specific decode

Finin2min - Section 57A in 2 minutes

Legal effectSection 57A excludes the application of specified RBI powers to an International Financial Services Centre to the extent those powers are exercisable by the International Financial Services Centres Authority under the IFSCA Act framework.

Operative ruleThe provision is a jurisdictional allocation rule intended to avoid overlapping exercise of powers in an IFSC; its exact reach depends on the function and IFSCA statutory remit.

Connected lawFor GIFT IFSC matters, build a regulator-function matrix before applying an RBI Act power and separately check FEMA/payment/banking provisions that may still involve RBI or the Central Government.

File evidenceRetain entity location/licence, IFSCA authorisation, activity classification and the statutory power being allocated.

Statutory structure and clause / subsection decode

This map separates the operative limbs of this provision so thresholds, powers, conditions and exceptions are not collapsed into a single summary.

Rule 1

The provision is a jurisdictional allocation rule intended to avoid overlapping exercise of powers in an IFSC

Rule 2

its exact reach depends on the function and IFSCA statutory remit.

Connected rule

For GIFT IFSC matters, build a regulator-function matrix before applying an RBI Act power and separately check FEMA/payment/banking provisions that may still involve RBI or the Central Government.

Worked practical example

Facts. An NBFC-like activity carried on in an IFSC should not automatically be analysed as if RBI exercises every Chapter IIIB power; first determine whether that function is vested in IFSCA under Section 57A and the IFSCA Act.

Compliance points and common mistakes

Do not decide the issue from the heading alone. Map the facts to the operative words of Section 57A and to each relevant subsection, clause, proviso or explanation shown above.
Keep the statutory question separate from the operational overlay. For GIFT IFSC matters, build a regulator-function matrix before applying an RBI Act power and separately check FEMA/payment/banking provisions that may still involve RBI or the Central Government.
Do not convert an exception, exemption or discretionary RBI/Government power into an automatic entitlement. Record the authority, conditions and effective date.
Where the provision is historical, omitted or repealed, state that status prominently and do not present it as a current compliance obligation.

Connected provisions and instruments

Section 57A has no universal instrument dependency in this package. Add an RBI circular or direction only when its subject, entity and effective date cover the issue being analysed.

Questions and answers

What is the purpose of Section 57A?

Powers of Bank not to apply to International Financial Services Centre: Section 57A excludes the application of specified RBI powers to an International Financial Services Centre to the extent those powers are exercisable by the International Financial Services Centres Authority under the IFSCA Act framework.

Which statutory limb should be checked first?

Rule 1 - The provision is a jurisdictional allocation rule intended to avoid overlapping exercise of powers in an IFSC

What is the next legal boundary?

Rule 2 - its exact reach depends on the function and IFSCA statutory remit.

What record should support the conclusion?

Section 57A file evidence: Retain entity location/licence, IFSCA authorisation, activity classification and the statutory power being allocated.

Primary sources

Source control for Section 57A: use the official consolidated RBI Act for the statutory text and footnotes, then separately reconcile any post-Finance Act 2022 amendment, commencement notification or RBI instrument relevant to the event date.