IFSCA sets net-worth criteria for payment system operators in GIFT IFSC: TReDS USD 1 million, LEI issuers USD 0.2 million
TaxByKK · Compliance News · taxbykk.com27 Oct 2026
In short
IFSCA has specified the financial soundness criteria for existing and new payment system operators (PSOs) in GIFT IFSC. A trade repository must keep net worth of at least one year's operating costs, an LEI issuer at least USD 0.2 million and a TReDS operator at least USD 1 million. Existing PSOs must comply within six months of the circular, and then file a statutory auditor's certificate every year by 30 September. The circular of 27 October 2026 took effect immediately.
- Authority
- International Financial Services Centres Authority, Department of Banking
- Circular
- e.F.No. IFSCA-FMPP0BR/12/2023-Banking-Part(2) dated 27 October 2026
- Type
- Circular
- Effective from
- Immediately (27 October 2026)
- Issued under
- Sections 12 and 13 of the IFSCA Act, 2019, with section 10(2) read with section 18 and section 7(1)(vi) of the Payment and Settlement Systems Act, 2007
- Applies to
- Authorised payment system operators in the IFSC, and applicants wanting to start a payment system there
- Time to comply
- Six months from the date of the circular, for existing PSOs
What changed
| Item | Before | Now |
|---|---|---|
| Trade Repository | — | Net worth of at least one year's operating costs at all times, calculated half-yearly |
| Issuer of Legal Entity Identifier (LEI) | — | Minimum net worth of USD 0.2 million |
| Trade Receivables Discounting System (TReDS) | — | Minimum net worth of USD 1 million |
| Large Value Payment Systems and Card Payment Networks | — | The entity must have sound financial status; no figure is given |
| Annual proof for existing PSOs | — | Statutory auditor's certificate of compliance for the preceding financial year, on or before 30 September each year |
| Applicants | — | A statutory auditor's certificate of compliance with the application |
The circular defines net worth to include paid-up equity, compulsorily convertible preference shares, free reserves, share premium and capital reserves from asset sales, less accumulated loss, intangible assets and deferred revenue expenditure. It states no penalty for a miss, and gives no figure for 'sound financial status'.
Who it applies to
- Authorised payment system operators in the IFSC, including trade repositories, LEI issuers and TReDS operators
- Applicants planning to start a payment system in GIFT IFSC
- Statutory auditors who certify compliance
- CAs, company secretaries and lawyers advising IFSC payment entities
What to do
- Existing PSOs: check net worth against the category figure within six months of 27 October 2026.
- Trade repositories: compute net worth against one year's operating costs every half-year.
- File the statutory auditor's certificate for the preceding financial year by 30 September each year; a trade repository adds its half-yearly computation.
- Applicants: attach the statutory auditor's certificate to the application.
- Review share capital terms: compulsorily convertible preference shares count towards net worth only if the shareholders' agreement bars any withdrawal.
Reference
IFSCA circular e.F.No. IFSCA-FMPP0BR/12/2023-Banking-Part(2), 27 October 2026, Financial Soundness Criteria applicable to existing PSO(s) and the Applicant(s) desirous of commencing Payment System.
Read the official PDF: IFSCA circularWritten by TaxByKK from the official notification. Check the official text before you act on it.
Frequently asked questions
What net worth must a TReDS operator in the IFSC hold?
A minimum of USD 1 million, under IFSCA's circular of 27 October 2026.
How long do existing payment system operators have to comply?
Six months from the date of the circular.
When is the auditor's certificate due each year?
On or before 30 September, for the preceding financial year.