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The International Financial Services Centres Authority (IFSCA) has proposed a unified Know Your Customer (KYC) framework for GIFT IFSC to streamline client onboarding across regulated entities. The draft framework introduces a unique client identification number and mandatory integration with KYC Registration Agencies (KRAs), allowing verified KYC records to be reused across institutions. The proposal aims to eliminate duplicate verification, strengthen regulatory compliance, reduce onboarding time and enhance ease of doing business within India's international financial services hub.
The International Financial Services Centres Authority (IFSCA) has proposed a unified Know Your Customer (KYC) framework for entities operating in Gujarat International Finance Tec-City (GIFT IFSC), introducing a common client onboarding system designed to eliminate repetitive verification and improve operational efficiency across the financial hub. The proposal was released for public consultation in the past week and seeks stakeholder feedback before implementation.
Under the draft framework, every client onboarded by a regulated entity in GIFT IFSC would be assigned a unique client identification number generated by a KYC Registration Agency (KRA). The identifier would allow verified KYC records to be used across multiple regulated entities, enabling customers to access financial services without undergoing repeated KYC checks each time they engage with another institution within the IFSC ecosystem.
To support the framework, all regulated entities will be required to integrate with at least one KRA for uploading, storing, retrieving and updating customer KYC records. Where a client's KYC already exists in the repository, institutions will be required to retrieve, verify and update the information instead of conducting an entirely fresh verification process. The proposal is intended to reduce duplication, lower compliance costs and accelerate client onboarding while maintaining regulatory standards.
IFSCA has proposed that regulated entities complete integration with a KRA within two months of the circular coming into force. All new clients onboarded on or after September 1, 2026, would be required to have their KYC details uploaded to the KRA system, while records of existing clients would need to be migrated by October 30, 2026.
The proposal builds upon the IFSCA (KYC Registration Agency) Regulations, 2025, which require regulated entities to upload customer KYC information within three working days of completing the verification process. However, certain entities and activities exempt under the IFSCA's Anti-Money Laundering, Counter-Terrorist Financing and Know Your Customer Guidelines, 2022, will remain outside the scope of the proposed mandate.
The regulator said the framework is intended to improve ease of doing business by creating a seamless onboarding process while strengthening compliance and data consistency across GIFT IFSC. The proposal also aligns with earlier recommendations to develop a centralised KYC repository capable of supporting multiple regulated entities and reducing friction for domestic and international investors operating within the financial centre.
IFSCA has invited comments from stakeholders on the draft circular until July 16, 2026. Following the consultation process, the authority is expected to finalise the framework, which forms part of broader efforts to strengthen GIFT IFSC's regulatory and digital infrastructure while making cross-border financial services more efficient.
Source: IFSC Authority
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