The International Financial Services Centres Authority (IFSCA) has issued an important notification regarding the amendment of the International Financial Services Centres Authority (Payment Services) Regulations, 2024. This amendment introduces changes to the regulations governing payment services within international financial services centres (IFSCs).
The amendment regulations, titled the International Financial Services Centres Authority (Payment Services) (Amendment) Regulations, 2024, aim to refine the existing framework for payment services provided within IFSCs. The amendment primarily focuses on the definition of “escrow service” within regulation 2 of the Principal Regulations.
Under the amended regulations, an “escrow service” is defined as a service provided by a payment service provider, wherein money is held in an escrow account with an IFSC Banking Unit (IBU) or an IFSC Banking Company (IBC) for and on behalf of one or more parties involved in a transaction. This definition clarifies the role and function of escrow services within IFSCs, providing a more precise framework for such services.
The amendment regulations are effective from April 2, 2024, upon their publication in the Official Gazette. It is crucial for stakeholders operating within IFSCs to familiarize themselves with these amendments to ensure compliance with the updated regulatory framework governing payment services.
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INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY
NOTIFICATION
Gandhinagar, the 2nd April, 2024
INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY (PAYMENT SERVICES) (AMENDMENT) REGULATIONS, 2024
IFSCA/GN/2024/002.—In exercise of the powers conferred by sub-section (1) of Section 12 read with subsection 1 of section 28 of the International Financial Services Centres Authority Act, 2019 (50 of 2019), the International Financial Services Centres Authority hereby makes the following regulations further to amend the International Financial Services Centres Authority (Payment Services) Regulations, 2024 (hereinafter referred to as the Principal Regulations), namely: –
1. (i) These regulations may be called the International Financial Services Centres Authority (Payment Services) (Amendment) Regulations, 2024.
(ii) They shall come into force on the date of their publication in the Official Gazette.
2. In regulation 2 of the Principal Regulations for clause (l) of sub-regulation (1) the following clause shall be substituted , namely:
“(l) “escrow service” means the service provided by a payment service provider, under an agreement, whereby money is held by such payment service provider in an escrow account with an IFSC Banking Unit (‘IBU’) or an IFSC Banking Company (‘IBC’) for and on behalf of one or more parties that are in the process of completing a transaction;
K. RAJARAMAN, Chairperson
[ADVT.-III/4/Exty./011/2024-25]
