IND IFSCA published circular (of May 21, 2025) re IBU participation in international payment systems as per s18 of Payment and settlement systems act, 2007 (PSS act).
Document dated May 21, 2025, received from IFSCA May 22, summarized on May 26.
Outline of Circular
IFSC banking units (IBUs) may participate as/be members of international payment systems for making/receiving payments to/from banks or financial institutions outside international financial services centers (IFSC) without prior approval of IND IFSCA.
An international payment system that permits IBUs to make or receive payments among themselves, thereby affecting domestic transactions, would require authorization from IND IFSCA under sub-section 1 of section 7 of the PSS act.
IBUs may participate as/be members of international payment systems for making/receiving payments with other IBUs, without prior approval of IND IFSCA, once the international payment systems comply with the above-mentioned condition.
IND IFSCA requires IBUs to review their participation in the international payment systems and notify of their compliance within 30 days from the date of this circular.
In addition, all IBUs are required to share with IND IFSCA a list of all the international payment systems in which they serve as participants as of Mar. 31, 2025.
Effectiveness
All IBUs shall report their compliance with this policy as well as a list of all the international payment systems in which they are participants by Jun. 20, 2025.
