International Financial Services Centres Authority (“IFSCA” or “Authority”), with powers conferred under Section 28(1), read with Section 12(1) and Section 13(1) of the International Financial Services Centres Authority Act, 2019, vide Circular No. IFSCA/24/2024-Banking-FC/01,[1] dated April 04, 2025, issued the framework for finance company/ finance unit undertaking the activity of global/ regional corporate treasury centres (“Framework”). With the issuance of this Framework, the circular titled as ‘Framework for undertaking Global/Regional Corporate Treasury Centres activities by Finance Company/Finance Unit in IFSC’, dated June 25, 2021, stands repealed.
IFSCA, under the International Financial Services Centres Authority (Finance Company) Regulations, 2021 (“FC Regulations”), permits Finance Companies and Finance Units set up in the International Financial Services Centre (“IFSC”) to undertake a range of financial services, including operating as Global/ Regional Corporate Treasury Centres (“GRCTC”). Pursuant to the earlier framework issued via circular dated June 25, 2021, the Authority has now issued a comprehensive and updated framework to align the GRCTC regime with international best practices and promote ease of doing business.
The key features of the Framework include:
(a) This Framework shall apply to entities seeking registration or already registered as Finance Companies or Finance Units under the FC Regulations for undertaking GRCTC activities.
(b) Entities shall apply through the ‘SWIT portal’ for registration under Regulation 3(4) of the FC Regulations. A provisional registration may be issued before the final Certificate of Registration is granted.
(c) GRCTCs shall always maintain a minimum owned fund of $ 0.2 million (Zero Point Two Million United States Dollars). For the Finance Units, this may be maintained at the parent level.
(d) The Authority may issue a Certificate of Registration upon satisfaction of all conditions under Regulation 3(7) of the FC Regulations and receipt of the prescribed fee. The Certificate shall remain valid unless suspended, cancelled, withdrawn, or surrendered. However, business in the IFSC may commence only after receipt of the Certificate and while holding a valid Letter of Approval under the SEZ Act, 2005.
(e) If deficiencies are found, the Authority shall notify the Applicant, granting 30 (thirty) days to rectify them. Failure to rectify may result in refusal of registration. The application also may be withdrawn any time before registration is granted. Further, if a registered entity fails to comply with registration conditions, the Authority may suspend, withdraw, or cancel registration.
(f) A Finance Company/ Unit undertaking GRCTC activities may provide services to its Group Entities, Parent’s Group Entities, and their branches (collectively, “Service Recipients”), whether resident or non-resident under Foreign Exchange and Management Act, 1999. An updated list of Service Recipients shall be maintained and submitted to the Authority upon request. Each Service Recipient must be registered with a competent authority in its home jurisdiction.
(g) Registered entities may undertake a wide range of treasury-related activities. A few examples of such are:
- Raising capital by issuance of equity shares;
- Borrowing including in the form of inter-company deposits;
- Credit arrangements;
- Factoring and Forfaiting;
- Acting as a Re-invoicing centre;
- Liquidity management.
(h) Entities shall implement and periodically review Board-approved policies on Corporate governance; Risk management; and Oversight of permissible activities.
(i) Operations must commence within 6 (six) months of receiving the Certificate of Registration. Extensions may be granted for up to three additional months upon justified application.
(j) Any change in control of 20% (twenty percent) or more of the total share capital, or business decision-making authority, shall require prior approval of the Authority. In the case of Finance Units, changes in the parent must be intimated within 15 (fifteen) days.
(k)Entities must adhere to the IFSCA Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer (AML/CFT/KYC) Guidelines, 2022, read with relevant circulars, including the exemption circular dated November 18, 2024, to the extent applicable.
(l) Transactions in IFSC must be in Specified Foreign Currencies. However, the transactions outside IFSC may be in other currencies. The entities may open Special Non-Resident Rupee (SNRR) accounts for non-IFSC business in India.
(m) Fee Structure:
| Fee Type | Amount |
| Application Fee | $ 1,000 (One Thousand United States Dollars Only) (one-time) |
| Registration Fee | $ 12,500 (Twelve Thousand Five Hundred United States Dollars Only) (one-time) |
| Recurring Fee | $ 25,000 per annum (Twenty Five Thousand United States Dollars Only) |
[1] https://ifsca.gov.in/Viewer?Path=Document%2FLegal%2F01-framework-for-grctc_updated04042025061059.pdf&Title=Framework%20for%20Finance%20Company%2FFinance%20Unit%20undertaking%20the%20activity%20of%20Global%2F%20Regional%20Corporate%20Treasury%20Centres&Date=04%2F04%2F2025