IFSCA on 10 October, 2023 has issued a Consultation paper on proposed IFSCA(Payment Services) Regulations, 2023. Comments and suggestions can be sent via email to the designated authorities, Mr. Supriyo Bhattacharjee and Mr. Vaibhav Sattavan, by November 10, 2023.
Key Provisions:
- Clear Specification of Payment Services: The draft regulations distinctly define the activities included in the term “payment services” and those that are excluded from this definition. This clarity is essential to ensure that all relevant activities fall under the regulatory framework, while avoiding unnecessary regulatory burdens on non-payment services.
- Authorisation and Associated Requirements: The draft regulations introduce a streamlined process where applicants can provide all eligible payment services with a single authorization. To be eligible, applicants must establish a company with a registered office in IFSC and meet specified net worth requirements.
- Authorisation Criteria: The regulations also lay out the criteria that IFSCA will use to evaluate applications for authorization. This ensures that all entities operating in the IFSCs meet specific standards to provide payment services.
- Revocation and Surrender of Authorisation: The draft outlines a transparent procedure for the revocation of authorization by IFSCA and the voluntary surrender of authorization by the payment service provider. This helps maintain regulatory control and accountability.
- Governance Arrangements: The draft regulations detail governance arrangements for payment service providers, including the management of service relationships. This ensures that the providers operate in a structured and compliant manner.
