Offshore Banks Restrict Credit Card Issuance to Wealthy Indians Due to Regulatory Changes
Several offshore banks in locations such as Zurich, Singapore, and London are pulling back on issuing international credit cards to wealthy Indian residents. This shift is attributed to a 2022 regulation by the Reserve Bank of India (RBI) that limits the duration resident Indians can hold idle money in foreign accounts to six months. The regulation, part of an overhaul of overseas investment norms including the Liberalised Remittance Scheme (LRS), has led to reluctance among international banks to offer credit cards linked to these accounts. The LRS allows residents to invest and spend up to $250,000 abroad annually. However, the 180-day deployment requirement under LRS is affecting the banking relationships of Indian families, as they have limited flexibility to maintain significant balances overseas. 
