India International Financial Services Centres Authority approves FinTech Sandbox Framework expanding access and introducing two-stage applications and authorisations

The India International Financial Services Centres Authority (IFSCA) approved a FinTech Sandbox Framework setting out how applicants can seek access to IFSCA sandboxes and other innovation facilitation mechanisms to test FinTech and TechFin ideas, products and solutions linked to activities across banking, capital markets, insurance, funds, pensions, metals and commodities, foreign universities and financial support services. Key changes include expanded eligibility to individuals and groups affiliated with duly recognised academic institutions, incubators and accelerators located in India and FATF-compliant jurisdictions. Applications must be filed through the Single Window IT System (SWIT) via a two-stage process, with a preliminary application evaluated within 30 days and a final application evaluated within 60 days. The approval pathway is also two-stage, moving from an in-principle approval with prescribed terms and conditions (which may include onboarding a testing partner) to a limited use authorisation once those conditions are met. The framework additionally allows market exploration for developed products within the IFSC and broadens eligible testing to cover all financial services, products and institutions regulated, or proposed to be regulated, by IFSCA.