The International Financial Services Centres Authority (IFSCA) on March 16, 2026, issued a circular introducing a revised FinTech Sandbox Framework for entities seeking Limited Use Authorisation in International Financial Services Centres (IFSCs). This new framework replaces the earlier 2022 framework and is based on insights from its implementation, global FinTech developments, and stakeholder feedback, with the objective of fostering innovation in financial technology.
The updated framework provides access to multiple sandbox environments, including Regulatory Sandbox, Innovation Sandbox, Inter-Operable Regulatory Sandbox, and Overseas Regulatory Referral Mechanisms. These sandboxes are designed to support testing and development of FinTech solutions across sectors such as banking, capital markets, insurance, fund management, and other financial services, enabling controlled experimentation while ensuring regulatory oversight.
Issued under the powers conferred by section 12 of the International Financial Services Centres Authority Act, 2019, the circular comes into immediate effect and supersedes all previous regulations, circulars, and guidelines related to sandbox activities in IFSCs. However, actions taken under the earlier framework remain valid.
[Notification No. 505/IFSCA-FTec0FTEF/1/2023]
