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The IFSCA has issued a revised framework for ITFS platforms in GIFT City.

Banking & Finance | Dated: 29 Dec 2024

In December 2024, the International Financial Services Centres Authority (IFSCA) released a revised framework for setting up and operating International Trade Financing Services (ITFS) platforms in Gujarat International Finance Tec-City - International Financial Services Centre (GIFT-IFSC) in Gandhinagar, Gujarat.

🎯 Key Highlights:

  • - This step will help bridge the financing gap for both exporters and importers in India and globally by allowing ITFS to operate within the IFSC.
  • - The new framework has simplified the net worth requirements and enabled overseas companies to factor in their receivables.
  • - IFSCA is the unified regulator responsible for the development and regulation of financial products, services, and institutions like GIFT-IFSC in India. It was established under the International Financial Services Centres Authority (IFSCA) Act of 2019.

💡 Other Important Facts:

  • (i) The new framework introduces a procedure for provisional registration and outlines the steps for refusal, revocation, or surrender of registration. Registration for eligible entities can now be done on an "on-tap" basis, meaning it can be done anytime.
  • (ii) The list of eligible participants has expanded. Previously, the list included financiers, exporters, importers, and insurance companies. Now, it also includes payment service providers, allowing them to offer currency exchange services and receive payments in local currencies in a timely and cost-effective manner.

📚 Test Your Knowledge:

Which organization recently issued a revised framework for ITFS platforms in GIFT City?

Correct Answer: IFSCA

🚀 Quick Recap: