The International Financial Services Centres Authority (IFSCA) issued a circular on April 23, 2025, clarifying and amending its earlier circular dated April 8, 2025, regarding the fee structure for entities in the International Financial Services Centres (IFSC) and those seeking guidance under the Informal Guidance Scheme. The new circular addresses representations from stakeholders and a subsequent review. Key changes include a USD 500 fee for modifications to scheme documents of Fund Management Entities (FMEs), clarification that late fees for periodic returns apply per activity per Regulated Entity (RE), and a reduced intimation fee of USD 250 (or Schedule I amount, whichever is lower) for changes in key personnel of FMEs.
Furthermore, the circular specifies that application and recurring fees for Payment Service Providers (PSPs) and Payment System Operators (PSOs) are payable for each activity they undertake. It also clarifies that fees for Finance Companies/Units undertaking core activities apply separately for each activity listed under IFSCA (Finance Company) Regulations, 2021. Flat recurring fees become payable from the financial year following the grant of registration. The definition of “Annual Turnover (IBUs)” is amended to “Daily fund- based and non-fund based turnover.” Conditional recurring fees for stock exchanges beyond USD 150 Billion turnover are also detailed, and the mechanism for broker dealers to pay monthly turnover-based fees through stock exchanges is clarified.
The circular confirms that the fee structure applies to the entire Financial Year 2025-26, regardless of when the fee was remitted, requiring payment of differential fees if applicable. As a one-time measure, applicable and differential fees for FY 2025-26 can be paid by May 10, 2025, or the original due date, whichever is later. This circular, issued under Sections 12 and 13 of the IFSCA Act, 2019, is effective immediately and aims to streamline fee-related processes for entities operating within the IFSC.
International Financial Services Centres Authority
Circular No. IFSCA-DTFA/2/2025 Dated: April 23, 2025
To
All Regulated Entities (REs) in International Financial Services Centres (IFSC)
All applicants to the International Financial Services Centres Authority (IFSCA)
All persons seeking guidance under IFSCA (Informal Guidance) Scheme, 2024 (Informal Guidance Scheme)
Dear Sir/Madam,
Subject: Clarifications on the Fee structure for the entities undertaking or intending to undertake permissible activities in IFSC or seeking guidance under the Informal Guidance Scheme
1. This has reference to the IFSCA circular no. IFSCA-DTFA/1/2025 dated April 08, 2025 (hereinafter referred to as the “Fee Circular”), which, inter-alia, provides the fee structure for the entities undertaking or intending to undertake permissible activities in IFSC or seeking guidance under the Informal Guidance Scheme.
2. Based on representations received from stakeholders and review undertaken, it has been decided, inter alia, to provide the following clarifications and amendments to the Fee Circular.
A. In partial modification to Para 7 (Processing fees) of the Fee Circular, the following statement is being inserted:
iv. In case of the Scheme(s) launched by the Fund Management Entity (FME), any modifications to the scheme documents shall be accompanied with a fee of USD 500.
B. It is clarified that for Para 8(ii) of the Fee Circular, the late fees on failure to submit periodic returns shall be applicable on a per activity basis for every RE.
C. In partial modification to Para 11 (Change in KMPs, etc), the following statement is being inserted:
In case of a Fund Management Entity (FME), an intimation for any change in Key Managerial Personnel (KMP), Director, Designated Partner, Trustee, or any person holding an equivalent position in the RE, by whatever name called, shall be accompanied with a fee of USD 250 or as specified at schedule I, whichever is lower.
D. The Application fees and Flat Recurring fees specified for Payment Service Providers (PSP) and Payment System Operators (PSO) in Part-1B & 1C of Schedule I of the Fee Circular are payable for each activity. Accordingly, Part-1B & 1C of Schedule I of the Fee Circular shall now read as under:
S. No. |
Type of Entities |
Application Fees |
License/Registration/
|
Recurring Fees |
Activity
|
||||
Flat |
Conditional |
||||||||
Type of Fee |
Amount |
Type
|
Amount |
Basis
|
Amount |
||||
B. |
Payment Service Providers (PSP) |
||||||||
i. |
For PSP designated as Regular Payment Service Provider (RPSP) |
||||||||
(a). Account issuance service (including e- money account issuance service) |
$1,000 |
Authorization (one-time) |
$25,000 |
Annual |
$5,000 |
N.A. |
Nil |
Nil |
|
(a). E-Money issuance service |
$1,000 |
$5,000 |
|||||||
(b).Escrowservice |
$1,000 |
$5,000 |
|||||||
(b). Cross border money transfer service |
$1,000 |
$5,000 |
|||||||
(c). Merchant acquisition service |
$1,000 |
$5,000 |
|||||||
–
S. No. |
Type of Entities |
Application Fees |
License/Registration/
|
Recurring Fees |
Activity
|
||||
Flat |
Conditional |
||||||||
Type of Fee |
Amount |
Type
|
Amount |
Basis
|
Amount |
||||
ii. |
For PSP designated as Significant Payment Service Provider (SPSP), the Annual fee shall be $10,000 for each activity undertaken as per B.(i). (a) to (e) above |
||||||||
C. |
Payment System Operators (PSO) |
||||||||
(c). Real time or deferred large value payment system |
$1,000 |
Authorization |
$15,000 |
Annual |
$10,000 |
N.A. |
Nil |
Nil |
|
(d). Trade Repository |
$1,000 |
$5,000 |
$5,000 |
||||||
(e). Issuers of Legal Entity Identifier (LEI) |
$1,000 |
$10,000 |
$5,000 |
||||||
(f). CardPaymentNetworks |
$1,000 |
$15,000 |
$15,000 |
||||||
(g). TREDS platforms authorised under the Payment and Settlement Systems Act, 2007 |
$1,000 |
$5,000 |
$10,000 |
||||||
(h). Any Other |
$1000 |
$15000 |
$10,000 |
||||||
E. It is clarified that for Part 1D(v) under Schedule I of the Fee Circular, the fees for Finance Companies/Units undertaking permissible core activities shall be applicable separately for each activity under Regulation 5(1)(ii) (a) to (d) of the IFSCA (Finance Company) Regulations, 2021.
F. It is clarified that for Part 5C under Schedule I of the Fee Circular, the flat recurring fees (annual) shall be payable from the financial year immediately succeeding the financial year in which the certificate of registration was granted.
G. The Clarificatory Note no. (2) of Schedule I of the Fee Circular shall now read as under:
| Clarificatory Note no. |
Existing | Amended |
| (2) | Total income (IBUs): Sum of interest income and other income | Annual Turnover (IBUs): Daily fund- based and non-fund based turnover |
H. It is clarified that conditional recurring fee applicable for stock exchanges, in excess of turnover of USD 150 Billion shall be as under:
USD 150,000 plus 0.000024% of annual turnover in excess of $150 Bn
Further, it is clarified that the monthly turnover based fee applicable to broker dealers shall be paid by the broker dealers to IFSCA through the respective Stock Exchanges.
3. It is clarified that the Fee Circular shall be applicable to all the fees pertaining to the FY 2025-
26, irrespective of the date of remittance of such fee. Accordingly, the applicant or REs which have remitted any fees pertaining to FY 2025-26 before the issuance of the Fee Circular, shall be required to pay the differential fees, if applicable, between the earlier applicable fees and the revised applicable fees.
4. As a one-time measure, the applicable fees as well as the differential fees, if applicable, as mentioned in Para 5, may be remitted to the Authority by May 10, 2025, or the due date specified in the Fee Circular, whichever is later.
5. This circular is issued in exercise of the powers conferred by Section 12 and 13 of the International Financial Services Centres Authority Act, 2019, to develop and regulate the financial products, financial services and financial institutions in the International Financial Services Centres (IFSCs) and shall come into force with immediate effect.
6. A copy of this circular is available on the website of the International Financial Services Centres Authority at ifsca.gov.in .
Yours faithfully,
Praveen Kamat
General Manager
Department of Treasury, Finance & Accounts
Email: praveen.kamat@ifsca.gov.in
Tel: +91-79-6180 9820
