The International Financial Services Centres Authority (IFSCA) issued Circular No. e.F.No. IFSCA-FMPP0BR/5/2024-Banking /2 on July 31, 2026, amending earlier circulars dated December 29, 2025, and June 30, 2026, regarding internet banking services for clients of IFSC Banking Units (IBUs). Following requests from IBUs referencing the closure of the Reserve Bank of India’s “Swap Facility for FCNR (B) Deposits” scheme, IFSCA granted a one-time compliance extension to September 30, 2026. Under the revised terms, IBUs commencing operations either before or after the issuance of the December 29, 2025 circular may offer liability products without fulfilling the specified circular requirements until September 30, 2026. If an IBU remains non-compliant by this date, it must cease onboarding new customers for the non-compliant liability product(s) effective October 1, 2026. All other provisions of the referenced circulars remain unchanged. This circular was issued under Sections 12 and 13 of the IFSCA Act, 2019, read with Section 35A of the Banking Regulation Act, 1949.
INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY
Circular No. e.F.No. IFSCA-FMPP0BR/5/2024-Banking /2 July 31, 2026
Subject: Amendment to the circular dated December 29, 2025 titled “Internet banking services to clients of IBUs – Review” and circular dated June 30, 2026 titled “Amendment to the Circular titled Internet banking services to clients of IBUs –Review”
1. Reference is to the following circulars issued by the Authority:
a. Circular titled “Internet banking services to clients of IBUs” “Internet banking services to clients of IBUs – Review” dated December 29, 2025
b. Amendment to the Circular titled “Internet banking services to clients of IBUs – Review” dated June 30, 2026
2. In view of the requests from IBUs to extend the time for compliance with the provisions of the abovementioned circulars till the closure of the “Swap Facility for FCNR (B) Deposits” scheme of the Reserve Bank of India, it has been decided to provide a one-time extension to the date of compliance with the provisions of the abovementioned circulars.
3. Accordingly, contents para 4 of the circular referred to in 1(a) above, shall be substituted with the following:
“An IBU commencing operations after the date of issue of this circular may offer liability products to its customers without complying with the requirements of the circular upto September 30, 2026. In the event of non-compliance by the prescribed date, the IBU shall, with effect from October 1, 2026, cease onboarding new customers for the liability product(s) that in respect of which it is non-compliant with the requirements of this Circular”
4. Further, contents para 2 of the circular referred at 1(b) above, shall be substituted with the following:
“An IBU that commenced operations prior to the date of issuance of this circular, shall ensure compliance with the requirements specified herein by September 30, 2026. In the event of non-compliance by the prescribed date, the IBU shall, with effect from October 1, 2026, cease onboarding new customers for the liability product(s) that in respect of which it is non-compliant with the requirements of this Circular”
5. All other provisions of the circulars referred to at 1(a) and 1(b) 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
