IFSCA circular IFSCA-FMPP0BR/3/2023-Banking 2026-27/01 · 10 Apr 2026
Official title
Requirements for Payment Service Providers entering into Rupee Drawing Arrangement (RDA)
Summary
Check the official recordThe International Financial Services Centres Authority has clarified that Payment Service Providers (PSPs) operating in the International Financial Services Centre must obtain prior permission from the Authority to participate in the Rupee Drawing Arrangement (RDA) scheme as a non-resident Exchange House. This requirement is in addition to existing mandates for participating in international payment systems. When requesting permission, PSPs must submit a comprehensive overview of their operational frameworks and processes to ensure compliance with the International Financial Services Centres Authority (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022, and other applicable laws regarding RDA transactions. This directive is issued under the International Financial Services Centres Authority Act, 2019, and is effective immediately.
What you must do
Key dates
Who is affected
INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY CIRCULAR
e.F.No. IFSCA-FMPP0BR/3/2023-Banking 2026-27/01 April 10, 2026 To, All Payment Service Providers in the International Financial Services Centre (IFSC)
Subject: Requirements for Payment Service Providers entering into Rupee Drawing Arrangement (RDA)
Reference may be drawn to the circular titled “Participation of Payment Service Providers (“PSPs”) in International Payment Systems” dated June 6, 2025, which, inter alia, requires a PSP to obtain prior approval of the Authority to participate as/be members of international payment systems for making or receiving payments to/from banks/financial institutions outside IFSC.
In this regard, it is clarified that prior permission from the Authority shall also be required for a PSP proposing to participate in Rupee Drawing Arrangement (RDA) scheme, as a non-resident Exchange House, in accordance with the Master Direction titled “Opening and Maintenance of Rupee/Foreign Currency Vostro Accounts of Non-resident Exchange Houses” dated January1,2016, issued by the Reserve Bank of India.
The PSP shall, along with the request for prior permission, provide a comprehensive overview of the framework and processes put in place by it to ensure compliance with the requirements specified under International Financial Services Centres Authority (Anti Money Laundering, Counter-Terrorist Financing and Know Your Customer) Guidelines, 2022, and any other applicable law(s) of a similar nature for the time being in force, in respect of the transactions proposed to be undertaken under the RDA.
This circular is issued in exercise of powers conferred under section 12 and 13 of the International Financial Services Centres Authority Act, 2019, to develop and regulate the financial services market in the IFSC and shall come into force with immediate effect.
Yours faithfully
(Supriyo Bhattacharjee) Chief General Manager Department of Banking
