New IFSCA Circular: KRA (KYC Registration Agency) Fee Structure Announced for GIFT City IFSC
- GIFT CFO
- 4 days ago
- 2 min read
The International Financial Services Centres Authority (IFSCA) has taken another significant and strategic step in its ongoing efforts to bolster the financial infrastructure of GIFT City. This development comes with the release of the official fee structure for entities that are seeking to register as a KYC Registration Agency (KRA) under the IFSCA framework, a move that is anticipated to enhance the operational landscape for financial services in the region.
As outlined in the latest circular dated June 13, 2025, the newly notified IFSCA (KYC Registration Agency) Regulations, 2025, provide a comprehensive and clear fee framework specifically designed for entities that are planning to operate as KRAs within GIFT City’s International Financial Services Centre (IFSC). This regulatory framework is pivotal as it sets the stage for the establishment of a standardized process for KYC compliance, which is essential in today's digital financial ecosystem.
🔍 What’s the KRA Fee Structure?
According to the IFSCA circular, the following fees are applicable for entities wishing to register as KRAs:
Application Fee: USD 1,000
Registration Fee: USD 5,000
Annual Fee: USD 5,000
How does it work?
The Application Fee of USD 1,000 must be paid at the time of filing the application with IFSCA, ensuring that the initial processing of the application can commence without delay.
Upon receiving in-principle or provisional approval from the IFSCA, the Registration Fee of USD 5,000 must be paid within 15 days to secure the registration status of the KRA.
Once registration is granted, the Annual Fee of USD 5,000 is payable based on the number of months remaining in the financial year on a pro-rata basis. It is important to note that from the subsequent year onwards, the annual fee will be due by April 30th each year, ensuring a predictable financial obligation for KRAs.
Why is this important?
The vision of GIFT City to build a world-class regulatory ecosystem is heavily reliant on establishing a robust compliance infrastructure. The introduction of this KRA framework is a crucial component in supporting secure, centralized KYC records, which not only helps in reducing duplication of efforts but also brings much-needed regulatory uniformity to all entities operating within the IFSC. This uniformity is essential for maintaining the integrity and efficiency of the financial services sector.
Furthermore, this initiative presents a significant opportunity for technology firms, compliance providers, and capital market intermediaries to explore a new business vertical within GIFT City. The KRA framework is expected to attract innovative solutions and services that can enhance KYC processes, ultimately contributing to the growth and sophistication of the financial services landscape in India.
📌 For those interested in delving deeper into the specifics, the full circular is available on IFSCA’s official website: www.ifsca.gov.in
At GIFT CFO, we are committed to supporting firms that are interested in applying for KRA licenses. Our services encompass a wide range of support activities, including eligibility checks, document drafting, regulatory liaison, and comprehensive setup support to ensure a smooth registration process.
For more details or to arrange a one-on-one advisory session, please connect with us at: inf
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