The International Financial Services Centres Authority (“IFSCA”), vide Circular No. IFSCA-FMPP0BR/5/2024-Banking, dated September 22, 2025, has released a draft circular (“Draft Circular”) proposing a revised regulatory framework for internet banking services offered by IFSC Banking Units (“IBUs”).
The initiative follows a prior circular dated April 22, 2024, which had laid down the broad contours of internet banking services for IBUs. Upon review, IFSCA is seeking to introduce detailed compliance requirements for each category of internet banking services, namely, information services, interactive information exchange services, and transactional services. These refinements are aimed at enhancing digital service standards, improving customer experience, and strengthening operational security in banking activities carried out from IFSCs.
The said Draft Circular can be accessed at: https://ifsca.gov.in/CommonDirect/GetFileView?id=21626bde60601ef44a0ed02201e1b48c&fileName=Public_consultation_Internet_Banking_Circular__Sep_22_20250922_0542.pdf
In view of the same, IFSCA encourages the public, market participants, and regulated entities to provide feedback to help shape this important regulatory update, latest by October 13, 2025.