IFSCA Global In-House Centres (GIC) Regulations, 2025: A Comprehensive Guide for Financial Institutions

Introduction & Regulatory Background

India’s ambition to emerge as a global financial hub has taken a decisive step forward with the introduction of the IFSCA Global In-House Centres (GIC) Regulations, 2025. These regulations provide a robust and forward-looking framework for setting up GIC in GIFT IFSC, primarily at GIFT City. They mark a significant evolution in India’s regulatory approach towards enabling global financial services operations.

Over the last decade, GICs have evolved from cost-driven back-office units into strategic centres supporting high-value activities such as risk management, financial reporting, treasury operations, compliance, analytics, and technology development. Recognising this transformation, the International Financial Services Centres Authority (IFSCA) has introduced a regulatory framework that supports innovation while maintaining strong governance, transparency, and global regulatory alignment.

The 2025 Regulations replace the earlier 2020 framework and reflect India’s strategic intent to bring India-centric financial services back onshore from offshore jurisdictions. By creating a business-friendly, internationally aligned environment, the framework seeks to position IFSCs as globally competitive hubs for financial institutions, enabling them to operate efficiently while benefiting from regulatory certainty and operational flexibility for GIC setup in IFSC.

These regulations are designed not only to attract global institutions but also to strengthen India’s participation in the global financial value chain. Through clarity in eligibility, governance, and permissible activities, the framework provides institutions with a predictable and scalable operating environment, making IFSCs an increasingly attractive destination for global in-house centre setup in India.

What is a Global In-House Centre (GIC)?

A Global In-House Centre (GIC) refers to a specialised unit established within an IFSC to provide financial services and support functions to entities within a Financial Institution Group. These services may include finance and accounting, risk management, compliance, treasury support, analytics, technology operations, and other financial service-related activities.

Under the 2025 Regulations, GICs can operate through various models, including:

• Captive centres
• Build–Operate–Transfer (BOT) arrangements
• Joint ventures
• Hybrid or other Authority-approved structures

A GIC may be established directly by a financial institution or through an authorised third-party service provider, subject to regulatory approval, making GIC registration in GIFT IFSC a structured and regulated process.

The term “Financial Institution Group” is broadly defined and includes banks, NBFCs, investment banks, insurance and reinsurance companies, funds, brokers, custodians, clearing corporations, and related financial entities. Group relationships may arise through ownership, control, common branding, network arrangements, or equity participation exceeding prescribed thresholds.

This flexible yet controlled definition allows global financial institutions to structure their operations efficiently while ensuring alignment with regulatory expectations.

Eligibility & Structure

Eligibility under the GIC framework is limited to entities that form part of a recognised Financial Institution Group. Applicants may be incorporated entities within IFSC or branches of foreign entities, subject to regulatory approval and compliance with applicable laws for GIC establishment in IFSC.

A key eligibility condition is that neither the applicant nor its promoters should belong to jurisdictions identified by the Financial Action Task Force (FATF) as “high-risk jurisdictions subject to call for action.” This ensures that IFSC operations maintain strong global credibility and financial integrity.

The regulations recognise multiple structural arrangements, including:

• Parent–subsidiary relationships
• Joint ventures and associates
• Entities connected through common branding
• Network structures with shared policies and systems
• Equity participation of 20% or more

Where a third-party service provider is involved, prior authorisation from the Financial Institution Group is mandatory. The Authority retains discretion to evaluate whether the applicant genuinely qualifies under the definition of a financial institution group.

This balanced approach ensures regulatory integrity while supporting global financial institutions setting up GIC in India.

Registration Process

The registration process for setting up a GIC is structured, transparent, and time-bound. Applications must be submitted through the Single Window IT System (SWIT) along with prescribed documentation and fees, forming the core of the GIC registration process in GIFT IFSC.

Upon review, the Authority may grant an in-principle approval, subject to specific conditions. The applicant is required to comply with these conditions within 180 days, unless an extension is granted.

Once compliance is verified, the Authority issues a Certificate of Registration, allowing the GIC to commence operations. The registration remains valid unless suspended, cancelled, or voluntarily surrendered with regulatory approval.

Any material change in ownership, structure, or operational scope must be disclosed, ensuring compliance with IFSCA GIC regulatory requirements.

Permitted Activities & Restrictions

GICs are permitted to provide services relating to financial products and financial services to their non-resident group entities. These services may include accounting, risk management, compliance monitoring, treasury operations, analytics, research, and technology-enabled support functions.

To maintain the international character of IFSCs, services provided to Indian group entities are capped at 10% of total annual revenue. This ensures compliance with IFSCA GIC regulations 2025 requirements.

Certain restrictions apply to prevent regulatory arbitrage. Existing operations in India cannot simply be transferred to the IFSC without prior approval. Similarly, foreign entities servicing Indian group companies may shift such operations to IFSC only after obtaining regulatory clearance.

Operationally, GICs must conduct business in specified foreign currencies, reinforcing the global nature of GIC operations in GIFT IFSC.

These provisions ensure that GICs operate with flexibility while preserving regulatory discipline and systemic stability.

Governance, Compliance & Reporting

Strong governance forms the backbone of the GIC regulatory framework. Each GIC must appoint a Principal Officer and a Compliance Officer, both of whom must be full-time employees based in the IFSC.

These officers are responsible for:

• Ensuring adherence to regulatory requirements
• Maintaining internal controls and documentation
• Managing reporting obligations
• Acting as primary liaisons with the Authority

All key personnel must meet stringent “fit and proper” criteria, covering integrity, financial soundness, and professional conduct.

GICs are subject to periodic reporting requirements, inspections, and audits, ensuring alignment with IFSCA compliance requirements for GICs.

This governance framework ensures transparency, accountability, and alignment with global best practices.

Strategic Benefits & Use Cases

The GIC framework offers compelling strategic advantages for global financial institutions. It enables organisations to centralise operations, enhance operational efficiency, and access a skilled talent pool within a stable regulatory environment.

Key benefits include:

• Cost optimisation without regulatory compromise
• Enhanced control over global operations
• Improved risk and compliance oversight
• Access to India’s growing financial and digital ecosystem

These benefits make GIC setup in GIFT IFSC India a strong strategic decision for multinational institutions.

Common use cases include treasury operations, compliance monitoring, financial reporting, analytics, technology development, and enterprise risk management.

These use cases also align with the broader evolution of Global Capability Centres within IFSCs. To understand the overall GCC ecosystem, operating models, and strategic relevance in GIFT IFSC, refer to our detailed guide on Global Capability Centres in GIFT IFSC, India.

For multinational institutions, IFSC-based GICs serve as strategic hubs that combine operational excellence with regulatory certainty, enabling long-term scalability and resilience.

Transition & Compliance for Existing Units

Entities registered under the earlier 2020 Regulations are required to align with the new framework within 90 days from its commencement. Existing approvals remain valid during this transition period, provided compliance requirements are met.

Institutions should undertake a structured gap analysis covering governance, operational scope, reporting mechanisms, and personnel requirements to ensure compliance with IFSCA GIC Regulations 2025.

This phased approach ensures continuity while strengthening the overall regulatory ecosystem.

Conclusion & Strategic Outlook

The IFSCA Global In-House Centres (GIC) Regulations, 2025 represent a transformative step in India’s journey toward becoming a global financial powerhouse.

For financial institutions, establishing a GIC in IFSC enables consolidation of global operations, enhanced governance, and long-term scalability under a structured GIC framework in GIFT IFSC.

As global financial services evolve, early adoption of GIC setup in GIFT IFSC will be a key differentiator for institutions seeking cost efficiency, regulatory clarity, and strategic growth.