IFSCA Facilitates Global Fund Movement in GIFT City with PSP Permits

The International Financial Services Centres Authority (IFSCA) has introduced significant amendments to the Regulatory Framework for Global Access in IFSC, bringing greater flexibility for broker-dealers, global access providers, and investors.

🔑 Key Highlights of the Amendment:

1. Bank Accounts Requirement (Clauses 27, 36, 37):

   • Global Access Providers and Introducing Brokers were earlier mandated to route all client funds exclusively through bank accounts with IFSC Banking Units (IBUs).

   • They also had to maintain separate accounts for proprietary trading and client funds.

2. New Flexibility – Use of Payment Service Providers (PSPs):

   • Based on industry representations, IFSCA has now permitted the use of authorised PSPs (licensed under IFSCA Payment Services Regulations, 2024) for fund movement.

   • This provides an alternative to opening accounts only with IFSC Banking Units, allowing Global Access Providers and Introducing Brokers to choose either IBUs or authorised PSPs.

3. Impact on Cross-Border Efficiency:

   • PSPs are expected to enhance competitiveness, reduce friction in cross-border payments, and lower transaction costs.

   • This amendment aligns with global best practices where fintech-driven PSPs complement traditional banking.

   

📌 Why This Matters for Global Fund Movement in GIFT City

• For Brokers & Access Providers: More operational flexibility and faster onboarding.

• For Clients & NRIs: Faster settlement cycles and more efficient fund transfers.

• For GIFT City Ecosystem: Strengthens IFSC’s position as a global financial hub by integrating regulated fintech innovation into capital market operations.

⚖️ Effective Date

The circular is effective immediately (from September 12, 2025). Compliance deadlines for earlier requirements (October 31, 2025 for Clause 27) remain, but with the new PSP option available.

📝 Conclusion

With this amendment, IFSCA has taken another forward-looking step to make Global Access in GIFT City more seamless, competitive, and investor-friendly for Global Fund Movement in GIFT City. This marks a strong signal of India’s intent to position GIFT IFSC as a leading hub for cross-border investments and global financial innovation.