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Corporate Laws Central Ministry of Finance International Financial Services Centres Authority Act, 2019

Participation of Payment Service Providers (PSPs) in international payment systems

06-Jun-2025 | IFSCA-FMPP0BR/3/2023-Banking

IFSCA has issued a Circular Regarding the Participation of Payment Service Providers (PSPs) in international payment systems. By virtue of this circular, the Authority lays down the following policies for PSPs participating in international payment systems: a. PSPs can join international payment systems to send or receive payments with banks or financial institutions outside the IFSC, but only after getting approval from the Authority. b. If an international payment system lets PSPs or other financial institutions in the IFSC make or receive payments that affect domestic IFSC transactions, it needs authorization from the Authority under the PSS Act. c. PSPs can join international payment systems to make or receive payments with other PSPs or financial institutions in the IFSC, but only if the system meets the conditions in 2(b) and they have prior approval from the Authority. Each PSP must review its involvement in international payment systems based on the policies and inform the Department of Banking Supervision about its compliance within 30 days from the date of this circular. PSPs must also share with the Authority a list of all international payment systems they were part of as of May 31, 2025 For detailed information, please refer to the attached circular.

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