The International Financial Services Centers Authority (IFSCA) has notified regulations to operationalize Global In-House Centers (GICs) in IFSCs, with the aim of positioning them as global hubs for high-quality financial services.
“To bring the India-centric financial services and transactions currently conducted in offshore financial centers back to the International Financial Service Center by providing a world-class business and regulatory environment,” the notification said as part of the objectives of the regulations. GIC Unit means a unit established in IFSC by an entity of a Financial Institution Group, either directly or through an external service provider. Such a unit must be registered according to new regulations. It can operate under any of the operating models, namely Captive Centre, Build-Operate-Transfer, Joint Venture or Hybrid.
Appropriate and correct standards
The GIC unit will ensure that the entity and its principal officer, compliance officer, directors/partners/designated partners and controlling shareholders are at all times ‘fit and proper’ persons. “A person shall be considered ‘fit and proper’ if such person has a record of honesty and integrity, including but not limited to financial integrity, good reputation and character, together with honesty,” the notice said. Also, the Principal Officer and the Compliance Officer will be full-time employees of the GIC Unit and will be based at the International Financial Service Centre.
Allowed services defined
Permitted services are defined in the regulations. These will relate to financial products and financial services and will be provided to the Financial Institution Group entities that are ‘non-resident’ and established in jurisdictions not identified in the Financial Action Task Force (FATF) public statement as ‘High-Risk Jurisdiction subject to call for action’. “An entity established outside India providing GIC services to a Financial Institution Group entity(ies) in India may undertake the same activities from the International Financial Service Centre, subject to prior approval of the Authority,” the regulations said. It further added that the GIC unit will not be established within IFSC by way of transfer of existing contracts or working arrangements from any entity of the Financial Institution Group in India.
Currency, reporting rules
The notice also stated that the GIC unit will conduct its business in one of the specified foreign currencies. However, such a unit may open an INR account to cover administrative and legal costs. “Each GIC unit will maintain its balance sheet in one of the specified foreign currencies,” the report said. The unit will provide the Authority with information relating to its activities, and financial reporting will be in US dollars unless otherwise stated.
Published on January 1, 2026
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