The International Financial Services Centres Authority (IFSCA), through its FinTech Sandbox Framework, 2026, effective March 16, 2026, has introduced a comprehensive framework to facilitate the development and testing of innovative financial technology solutions in a controlled environment within IFSCs. The framework replaces the earlier FinTech Entity Framework, 2022 and Regulatory Sandbox Framework, 2020, while preserving the validity of actions and authorisations granted under those earlier regimes.
The framework provides four testing environments—FinTech Regulatory Sandbox (FRS), FinTech Innovation Sandbox (FIS), Inter-Operable Regulatory Sandbox (IoRS), and Overseas Regulatory Referral Mechanism/FinTech Bridge—to support innovation across banking, capital markets, insurance, fund management, and related sectors. Eligible applicants include domestic and foreign companies, LLPs, start-ups, regulated entities, research institutions, incubators, accelerators, and individuals associated with such organizations, subject to prescribed eligibility conditions and regulatory safeguards.
IFSCA has prescribed a two-stage application process through the Single Window IT System (SWIT) Portal, consisting of a Preliminary Application followed by a Final Application upon acceptance. Applicants must demonstrate innovation, user benefits, need for controlled testing, and effective risk management measures. Applicable fees are payable at the time of the Final Application, and detailed documentation requirements are specified in Annexure I of the Framework.
