IFSCA Fintech Sandbox Framework – What You Need to Know

The International Financial Services Centres Authority (“IFSCA”), vide Circular dated March 16, 2026, has introduced a revised FinTech Sandbox Framework, replacing the April 27, 2022 framework for entities seeking Limited Use Authorisation as FinTech Sandbox Entities in IFSCs. The framework takes immediate effect, while entities operating under the 2022 framework may continue until the expiry of their authorisation.

Compared to the 2022 framework, the revised framework introduces enhanced compliance requirements such as monthly reporting, extended record retention, a two-stage application process, and structured exit mechanisms while also expanding eligibility, broadening permissible activities, and enabling limited remote testing in certain cases.