RBI has issued a Circular on December 1, 2022, addressing the issue of financial products by overseas/foreign branches of Indian banks and All India Financial Institutions (‘AIFI’). The foreign branches/foreign subsidiaries of the Indian banks and AIFIs (including branches in International Financial Services Centres (‘IFSCs’)) are now permitted to deal in financial products, including structured financial products which are not available / permitted by the RBI in the domestic market. The Circular further prescribes various conditions that the parent Indian bank/AIFIs is/are required to ensure compliance with, in order to enable its/their foreign subsidiaries/branches to offer such products. The operations of such entities are also subject to applicable laws in India, unless specifically exempted. The provisions of this Circular supersede and repeal the previous directions issued by the RBI by way of Circulars dated December 1, 2008, and May 12, 2014 on the subject.