IFSCA has issued clarification regarding Participation of Payment Service Providers (“PSPs”) in international payment systems. IFSCA lays down the following policies for PSPs participating in international payment systems:
- PSPs may participate as/be members of international payment systems for making or receiving payments to/from banks/financial institutions outside IFSC after obtaining prior approval of the Authority.
- An international payment system that permits PSPs to make or receive payments among themselves or among other financial institutions in IFSC, thereby affecting domestic (i.e. IFSC) transactions, would require
authorisation from the Authority. - PSPs may participate as/be members of international payment systems for making or receiving payments with other PSPs or to/from other financial institutions in IFSC after being satisfied that such international payment system complies with the conditions and after obtaining prior approval of the Authority.