Summary: The International Financial Services Centres Authority (IFSCA) has amended its circular governing internet banking services offered by IFSC Banking Units (IBUs). The amendment requires IBUs that commenced operations before the issuance of the circular to comply with the prescribed requirements by 31 July 2026. If an IBU fails to comply by that date, it must stop onboarding new customers for the liability products for which it remains non-compliant from 1 August 2026. The circular also clarifies that the expression “all linked accounts” includes all of a customer’s accounts, including deposit and loan accounts. It further clarifies that “whitelisting” refers to a feature enabling customers to maintain a predefined list of approved beneficiaries. Additionally, IFSCA has made the requirement under paragraph 8.i.b. of the earlier circular non-mandatory. All other provisions of the previous internet banking circulars remain unchanged. The circular has been issued under the powers conferred by the IFSCA Act, 2019 and the Banking Regulation Act, 1949.
INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY
Circular No. IFSCA-FMPPOBR/5/2024-Banking /1 | Dated: June 30, 2026
To,
All IFSC Banking Units
Subject: Amendment to the Circular titled “Internet banking services to clients of IBUs —Review”
1. Reference may be drawn to the following Circulars issued by the Authority in relation to Internet banking services to clients of IBUs:
(a) Circular titled “Internet banking services to clients of IBUs”, dated April 22, 2024, issued by the Authority;
(b) Circular titled “Internet banking services to clients of IBUs” “Internet banking services to clients of IBUs —Review”, dated December 29, 2025.
(the aforesaid circulars are hereinafter collectively referred to as Internet Banking Circulars)
2. Upon review of the Internet Banking Circulars, it has been decided that para 5 of the Circular referred at 1 (b) above, shall be substituted with the following para, namely:
“An IBU that commenced operations prior to the date of issuance of this Circular shall ensure compliance with the requirements specified herein by July 31, 2026. In the event of non-compliance by the said date, the IBU shall, with effect from August 1, 2026, cease onboarding new customers for such liability product(s) in respect of which it is non-compliant with the requirements of this Circular.”
3. Further, it has been decided to issue the following clarifications:
a) the expression “all linked accounts” in para 8.i.a. of the Circular referred at 1 (b) above, shall mean all accounts of the customer, including deposit account(s) and/or loan account(s); and
b) the term “whitelisting” in para 9.i.g. of the Circular referred at 1 (b), shall mean the feature that enables a customer of the IBU to designate a predefined approved list of beneficiaries.
4. It has also been decided that the requirement under para 8.i.b. of the Circular referred at 1(b) above, shall not be mandatory.
5. All other provisions of the Circular shall remain unchanged.
6. This Circular is issued in exercise of the powers conferred under sections 12 and 13 of the International Financial Services Centres Authority Act, 2019 read with Section 35A of the Banking Regulation Act, 1949.
7. A copy of this circular is available on the website of the International Financial Services Centres Authority at ifsca.gov.in.
Yours faithfully,
(Riddhi Bhandari)
Chief General Manager
Department of Banking
