IFSCA Issues Framework for FinTech Entity in the IFSCs

News: The International Financial Services Centres Authority (IFSCA), has issued a detailed “Framework for FinTech Entity in the IFSCs”.

Key Points

• The “Framework for FinTech Entity in the IFSCs” is aimed at giving a boost to the establishment of a world-class FinTech Hu b at GIFT IFSC.
• The framework proposes to cover:
  • (i) financial technology (FinTech) solutions resulting in new business models, and applications, linked to financial services regulated by IFSCA and
  • (ii) advanced/innovative technological solutions that aid and assist activities in relation to financial products, financial services, and financial institutions (TechFin).
• The framework provides for a dedicated Regulatory Sandbox for FinTech products or solutions namely IFSCA FinTech Regulatory Sandbox.
• This would enable them to apply and avail of Grants under the IFSCA FinTech Incentive Scheme 2022.

About IFSCA

• The International Financial Services Centres Authority (IFSCA) has been established on April 27, 2020, under the International Financial Services Centres Authority Act, 2019.
• It is headquartered at GIFT City, Gandhinagar in Gujarat.
• The IFSCA is a unified authority for the development and regulation of financial products, financial services, and financial institutions in the International Financial Services Centre (IFSC) in India.
• At present, the GIFT IFSC is the maiden international financial services center in India.
• Prior to the establishment of IFSCA, the domestic financial regulators, namely, RBI, SEBI, PFRDA, and IRDAI regulated the business in IFSC.