In a move that aims to strengthen digital banking services within India’s International Financial Services Centre (IFSC), the International Financial Services Centres Authority (IFSCA) has opened public consultation on a draft circular titled “Internet Banking Services to Clients of IBUs – Review”. The consultation is open until October 13, 2025, inviting stakeholders and the general public to share feedback on the proposed compliance requirements for IFSC Banking Units (IBUs).
🧭 Objective of the Consultation
The primary goal of this consultation is to gather views and suggestions on enhancing the quality, safety, and functionality of internet banking services offered by IBUs. These services are categorized into:
- Information Services
- Interactive Information Exchange Services
- Transactional Services
The IFSCA’s intention is to create a robust digital framework that meets global banking standards, ensures operational transparency, and delivers seamless banking experiences for international clients served by IBUs at GIFT City and other IFSCs.
🏦 Background
IFSCA had previously issued a circular on April 22, 2024, setting out initial guidelines for internet banking services by IBUs. Upon review and based on industry developments, the Authority now proposes specific compliance requirements for each service category.
These proposed standards are detailed in a draft circular, annexed to the consultation note, and reflect the Authority’s intent to:
- Encourage digital innovation in banking,
- Align with international best practices, and
- Protect consumer interest with strong compliance checks.
💻 Key Features of the Draft Circular
1. Information Services
- IBUs must clearly display the list of currencies in which services are offered.
- Cut-off timings for same-day transactions must be clearly communicated.
2. Interactive Information Exchange
IBUs are expected to offer customers a comprehensive digital dashboard with:
- Real-time balance tracking,
- Live currency conversion rates,
- Downloadable statements in formats like CSV, JSON, and XML,
- Options for giving disposal instructions on inward remittances,
- Facilities to request premature withdrawal of deposits,
- SMS/email alerts for transaction notifications.
3. Transactional Services
A minimum standard for all IBUs will include:
- Dual-factor authentication (e.g., hardware token, OTP),
- Intra- and inter-bank fund transfers,
- Fixed deposit creation,
- Currency conversion,
- User access management for corporate clients,
- Ability to manage pre-approved beneficiaries,
- Auto-scheduling of payments, including rule-based and recurring payouts,
- Validation tools to prevent incorrect or non-compliant transactions.
🕒 Compliance Timeline
All IBUs must align their internet banking services with the requirements of this circular by March 31, 2026.
📬 How to Submit Feedback
Stakeholders are encouraged to send their comments in the prescribed format (MS Word or Excel) via email to:
- Ms. Riddhi Bhandari – riddhi.bhandari@ifsca.gov.in
- Mr. T. P. Samuel Wesly – wesly.samuel@ifsca.gov.in
Submissions should clearly mention the page number, paragraph number, suggested modifications, and rationale for the suggestions.
🌐 Final Thoughts
This public consultation is another sign of IFSCA’s commitment to building a future-ready, digitally advanced banking ecosystem within India’s IFSC framework. By introducing granular, tech-forward, and client-centric guidelines, the Authority is laying the groundwork for a globally competitive financial services hub at GIFT City.
Startups, fintechs, global banks, and digital-first banking units are all encouraged to engage in this consultation process and help shape the future of internet banking within India’s international financial corridors.