The International Financial Services Centres Authority (“IFSCA”), vide Circular No. 505/IFSCA-FTec0FTEF/1/2023, dated September 19, 2025, issued a circular for seeking comments and suggestions on the draft FinTech Sandbox Framework (“Draft Framework”)
The Draft Framework published by IFSCA aims to foster innovation in financial services within International Financial Services Centres (IFSCs), and can be accessed at https://ifsca.gov.in/CommonDirect/GetFileView?id=21626bde60601ef44a0ed02201da7b0c&fileName=Draft_Public_Consultation_Paper__FinTech_Sandbox_Framework_Approved_19092025_20250919_0655.pdf. It proposes the establishment of structured innovation facilitators, such as: Regulatory Sandbox; Innovation Sandbox; Inter-Operable Regulatory Sandbox; and Overseas Regulatory Referral Mechanisms. These facilitators are intended to support FinTech and TechFin activities spanning sectors such as Banking, Capital Markets, Insurance, Asset Management, and other regulated financial services.
This Draft Framework builds upon the existing ‘Framework for FinTech Entity in the IFSCs’ issued on April 27, 2022, and reflects insights gained from its implementation, as well as feedback from industry stakeholders and global FinTech trends.
IFSCA invites comments, suggestions, and feedback on the draft framework from the general public, fintech entities, market participants, and other stakeholders latest by October 10, 2025.