New Fund Flow Rules for GIFT IFSC Financial Institutions

As GIFT IFSC continues growing into a globally competitive financial centre, regulatory transparency around operational transactions has become increasingly vital. Further tempting international businesses and investors, the ecosystem needs transparent fund movement, consistent compliance approaches and smooth banking infrastructure.

Realizing this, the International Financial Services Centres Authority (IFSCA) has amended its earlier exemption circular under the AML/CFT/KYC Guidelines, spotlighting how regulated entities should acquire monetary consideration from business transactions. This shift improves functional control by specifying authorized banking channels for fund flows, supporting compliance standards.

Why the Amendment Matters

Operational payments such as professional fees, service charges, commissions and other business receipts form an essential part of day-to-day financial activities for regulated entities.

The amended circular explains that all financial institutions, including entities benefiting from specific AML exemptions, must transact or receive monetary consideration arising from business trades only through an account maintained with an IFSC Banking Unit (IBU) or a Special Non-Resident Rupee (SNRR) account.

This clarification enhances clarity, helping regulated commodities feel liable for keeping trust within the ecosystem.

Supporting Regulatory Consistency

The amendment reflects IFSCA's broader objective of creating a consistent compliance framework across the GIFT IFSC ecosystem.

Instead of permitting different operational practices for exempt and non-exempt entities, the revised provision establishes a common expectation regarding the routing of business-related funds. This improves oversight while reducing ambiguity for regulated entities managing domestic and cross-border financial transactions.

Exact guidance on banking channels helps achieve more powerful treasury controls, giving legal teams and compliance officers confidence in operational compliance.

Industry Insights: Fund Flow Governance & Payment Transparency

Suggested placement: After 'Supporting Regulatory Consistency' and before 'What Regulated Entities Should Consider'.

Industry Insight	Why It Matters
Global cross-border payments are expected to exceed US$320 trillion annually by 2032.	Demonstrates the growing importance of efficient and transparent payment infrastructure for international financial centres.
The G20 Cross-Border Payments Roadmap identifies faster, cheaper and more transparent payments as a global priority.	Supports regulatory initiatives such as IFSCA's efforts to strengthen fund flow governance and operational transparency.
According to SWIFT, more than 90% of international payments are processed within one business day across its network.	Highlights increasing expectations for efficient treasury operations and regulated payment channels.
Financial regulators worldwide continue strengthening AML/CFT controls around business-related fund flows.	Standardised banking channels help reduce operational, compliance and money laundering risks.
Digital banking infrastructure is becoming central to international financial centres.	Supports secure routing of business receipts through IFSC Banking Units (IBUs) and SNRR accounts.

What Regulated Entities Should Consider

Regulated entities should immediately review their existing payment processes to ensure that all business receipts comply with the revised requirements and align with the new guidelines.

Key areas to evaluate include:

• Internal payment workflows

• Treasury management procedures

• Banking arrangements

• SNRR account usage

• IFSC Banking Unit account operations

• Internal compliance policies

Proactively reviewing these processes can help regulated entities feel prepared and in control, reducing operational uncertainty and supporting compliance efforts.

Strengthening Confidence in GIFT IFSC

Every regulatory clarification contributes to building confidence in GIFT IFSC's financial ecosystem.

By standardizing the channels through which business-related monetary consideration is received, IFSCA continues strengthening governance, improving transparency and reinforcing the credibility of India's International Financial Services Centre.

While the amendment may appear operational, it reflects a broader regulatory philosophy focused on efficient financial infrastructure, robust compliance standards and sustainable international growth.

How Gift CFO Can Help

Gift CFO supports banks, financial institutions, fintech companies, fund managers, family offices and international businesses with GIFT IFSC advisory, regulatory compliance, treasury structuring, AML/CFT advisory, tax advisory and cross-border business solutions. As regulatory expectations continue to evolve, timely implementation helps organizations strengthen governance while improving operational efficiency.

DISCLAIMER: This article is published for informational, educational, and analytical purposes only. It does not constitute legal advice, regulatory guidance, trade compliance advice, or a solicitation of any kind.

All information in this article is based on IFSCA Circular No. IFSCA-PMTS/10/2023-Precious Metals/2026/2 dated 15th June 2026, issued under Sections 12 and 13 of the International Financial Services Centres Authority Act, 2019, read with Regulation 78 of the IFSCA (Bullion Market) Regulations, 2025. This circular amends the original Circular dated 10th October 2025 on import of gold or silver by Qualified Jewellers and valid India-UAE CEPA TRQ holders through IIBX, as previously updated on 2nd January 2026.

References to DGFT Notifications 17/2026-27 (dated 16th May 2026) and 19/2026-27 (dated 2nd June 2026) are based on information contained within the IFSCA circular. Readers should independently verify the full text of these DGFT notifications for complete details.

A separate, updated Consolidated Circular incorporating these amendments is being issued by IFSCA. Readers should refer to the official, most current Consolidated Circular available at www.ifsca.gov.in under Legal Framework → Circulars for authoritative and up-to-date compliance requirements.

Eligibility for Qualified Jeweller notification, import authorisation requirements, and applicable policy conditions may vary based on entity type, SEZ status, ITC(HS) classification, and other factors specific to each applicant. Entities are strongly advised to consult qualified legal, customs, trade compliance, and tax professionals before undertaking any bullion import transaction through IIBX.

The publisher is not a law firm, customs broker, or IFSCA-regulated entity. Nothing in this article constitutes legal or regulatory advice.