IFSCA Unlocks Flexible Entry for Treasury Centres in GIFT IFSC

📜 Background: Earlier Framework (2021) for Treasury Centres in GIFT IFSC

Under the original 2021 GRCTC Framework, setting up a (GRCTC) Global/Regional Corporate Treasury Centres in GIFT IFSC was restrictive:

• ❌ Strict bar on receiving/transferring existing contracts from Indian service recipients

• ❌ No clarity on minimum employment requirements in GIFT IFSC

• 🛑 Limited flexibility for multinational groups piloting treasury operations in India

These restrictions discouraged global firms from using GIFT City as a treasury base unless they were ready to go all in from Day 1.

✅ What’s New Now – April & June 2025 Reforms for Treasury Centres in GIFT IFSC

IFSCA has updated the framework in April 2025 and further amended it in June 2025 to enhance ease of doing business.

🧑💼 1. Minimum Employment Requirement Introduced

📌 Clause 3(2)(ii) now mandates:

• At least 5 qualified professionals

• Including a Head of Treasury and a Compliance Officer

• All to be physically based in GIFT IFSC

🔍 Earlier: There was no specific staffing requirement—leaving room for “nameplate” entities with no real presence.

✅ Now: Encourages genuine operational substance and local job creation.

🔓 2. Conditional Relaxation on Indian Contract Transfers for Treasury Centres in GIFT IFSC

📌 June 9, 2025 Amendment to Clause 3(2)(ii) allows:

“...the Chairperson of the Authority may grant relaxation from the above condition... for a period not exceeding one year from the date of commencement of operations.”

This means:

• GRCTCs can request approval to receive transferred contracts from Indian entities

• Valid for up to 12 months

• Based on business volume and proposed activity plan

🔍 Earlier: This was strictly prohibited under all circumstances.

✅ Now: Enables phased, pilot-friendly entry, helping MNCs test GIFT IFSC before scaling operations.

📊 Summary Table

Feature	Earlier (2021)	Now (2025)
Indian contract transfers	Completely prohibited	Allowed conditionally for 1 year (Chairperson’s approval)
Minimum local employment	Not specified	5 qualified employees (incl. Treasury Head + Compliance)
Entry Flexibility	None	Supports pilot-stage treasury operations

🔗 References:

• 📘 Updated GRCTC Framework – April 2025

• 📄 Amendment Circular – June 2025

📢 Final Word

With these updates, IFSCA has struck a balance between substance and flexibility—empowering global corporates to test, build, and scale treasury hubs from GIFT City.