IFSCA Unlocks Flexible Entry for Treasury Centres in GIFT IFSC
- GIFT CFO
- Jun 9
- 2 min read
📜 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:
📢 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.
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