What it is
A payment service provider in GIFT City is an entity authorised by the IFSCA to carry on payment-related business from within the International Financial Services Centre. The framework covers several distinct kinds of payment activity, and an applicant is authorised for the specific ones it intends to carry on.
Categories of activity
- Account issuance, including e-money issuance and wallet-type services.
- Escrow-like holding and transfer of funds in the course of payments.
- Cross-border money transfer services.
- Merchant acquisition and payment processing.
Who sets one up
Established payment companies expanding into cross-border flows, fintech firms building remittance or treasury products, and financial groups that want an internationally facing payments arm under a single regulator.
Why GIFT City
Payments in the IFSC are transacted in foreign currency and aimed at cross-border flows, which suits businesses serving non-resident customers, global merchants and international corporate treasuries. A single regulator for the whole activity set is a practical advantage over stitching together multiple approvals.
Broad requirements
- Authorisation from the IFSCA for each category of payment activity intended.
- Net worth and capital conditions appropriate to those categories.
- Fit-and-proper promoters and management, and a competent senior team on the ground.
- Technology, information security, cyber resilience and business continuity arrangements.
- Anti-money laundering and counter-terrorist-financing systems, customer protection and grievance handling.
- Physical presence in GIFT IFSC and continuing reporting to the regulator.
Common questions
Can I serve customers in India? The framework is directed at cross-border and foreign-currency payment activity; domestic retail payments remain under the domestic regime.
Do I need authorisation for every category? You are authorised for what you apply for, so the scope should match the product you actually intend to run.
Is a sandbox route available? Fintech firms testing a new payment idea may look at the IFSCA regulatory sandbox before a full authorisation.
Next step
Describe the payment product you have in mind and we will map it to the right authorisation category and set out the obligations that follow. Start with our eligibility check.
