The International Financial Services Centres Authority (IFSCA) issued a circular on November 27, 2025, clarifying procedures for raising invoices by IFSC Insurance Offices (IIOs). Referencing Regulation 18 of the IFSCA (Registration of Insurance Business) Regulations, 2021, the circular addresses operational challenges faced by IIOs when invoicing in the currency of the underlying reinsurance contract while transacting through IFSC Banking Units (IBUs). It clarifies that IIOs can issue invoices to Indian insurers, foreign insurers, reinsurers, or cedants in any currency, including Indian Rupees (INR). However, the actual receipt of funds in the IIO’s bank account with an IBU must be in a “specified foreign currency” as defined in the First Schedule of the IFSCA (Banking) Regulations, 2020. This clarification ensures compliance with IFSCA regulations, facilitating smoother cross-border reinsurance transactions while maintaining proper currency settlement standards. The circular leverages powers under sections 12 and 13 of the IFSCA Act, 2019.
International Financial Services Authority
Circular eF.No. 103/IFSCA/Ins/CIRC/1/2021 Dated: November 27, 2025
To,
All IFSC Insurance Offices,
Subject: Clarification on raising of Invoice by IFSC Insurance Offices
Reference may be drawn to the International Financial Services Centres Authority (Registration of Insurance Business) Regulations, 2021, in particular regulation 18 which inter-alia empowers the International Financial Services Centres Authority (herein after referred to as ‘IFSCA’) to issue clarification for facilitating and regulating financial services related to insurance and re-insurance in an International Financial Services Centre (IFSC).
2. IFSCA has received feedback and representations from IFSC Insurance Offices (‘IIOs’) regarding certain operational constraints faced by them, on account of raising of invoice in the currency of the underlying contract of reinsurance, while transacting through the IFSC Banking Units (IBUs).
3. In this regard, it is hereby clarified as follows:-
“An IIO transacting re-insurance business may raise invoice on Indian insurer(s), foreign insurer(s), re-insurer(s) or cedant(s) as the case may be, in the currency of the underlying contract of reinsurance, including in INR:
However, the realization of amount against such invoice, in the bank account of the IIO, maintained with any IBU shall be in the specified foreign currencies.
Explanation. – For removal of doubt, it is hereby clarified that “Specified Foreign Currency” shall mean the currencies specified in the First Schedule of the International Financial Services Centres Authority (Banking) Regulations, 2020, as amended from time to time.
4. This clarification is issued in exercise of powers conferred under section 12 and 13 of the International Financial Services Centres Authority Act, 2019 read with regulation 18 of the International Financial Services Centres Authority (Registration of Insurance Business) Regulations, 2021.
5. A copy of this clarification is available on the website of IFSCA at ifsca.gov.in
sd/-
Bhaskar Khadakbhavi
General Manager
Division of Insurance Regulations
bhaskar.khadakbhavi@ifsca.gov.in
