The framework
IFSCA made the TechFin and Ancillary Services Regulations on 8 July 2025, and they came into force on Gazette publication, dated 10 July 2025. They bring together two earlier routes: the 2021 framework for ancillary services and the TechFin limb of the 2022 FinTech Entity framework. An entity registered under them is a TechFin and Ancillary Service Provider. It may provide one or more ancillary services (First Schedule) or TechFin services (Second Schedule). These are services that aid or assist in making arrangements for the financial services in sub-clauses (i) to (xi) of section 3(1)(e) of the IFSCA Act.
TechFin services are technology solutions or services provided, directly or indirectly, for that purpose. Existing providers authorised under the earlier frameworks have to migrate. See Entities authorised under the 2022 framework.
What a TechFin provider may do
The Second Schedule lists 24 heads. They include:
- application development and maintenance, IT development and support, ERP systems and eGRC platforms;
- cloud computing, data centre services and management of IT infrastructure, including for the payment system ecosystem;
- cyber security and cyber risk management;
- regulatory technology and supervisory technology;
- big data and analytics, and solutions using AI or machine learning, biometrics, digital identity and KYC/AML/CFT, fraud detection, distributed ledger technology, IoT, quantum technology and Web 3.0;
- technology solutions supporting digital banking and trade finance, and tokenisation support services;
- accelerators, climate and sustainable technology, space technology, and technology centres of excellence providing R&D support; and
- outsourced services that a home-country financial regulator permits its regulated entities to outsource.
Typical engagements are core banking, trading, risk and regtech platforms delivered to IFSC or overseas financial institutions. IFSCA's FAQs add that building and maintaining software on which book-keeping, accounting, tax and financial-crime compliance services are performed is covered, where the recipients are BATF service providers in the IFSC or outside India.
The Third Schedule sets the limits. A provider may not undertake core activities that home regulators do not allow to be outsourced, or any activity regulated under another IFSCA framework. Facility management, transport and logistics, and other services not connected with financial services are also excluded. A provider wanting to carry on a regulated activity needs the separate registration (Fourth Schedule).
Eligibility and conditions
- Legal form: a company or LLP incorporated in the IFSC, or a branch of a company or LLP incorporated outside it. A partnership firm whose partners are all members of a statutory professional body is also eligible (regulation 5(1)).
- Promoters: all promoters or partners must be from jurisdictions not identified by FATF as high-risk jurisdictions subject to a call for action (regulation 5(2)).
- Fit and proper: the entity, its principal officer, compliance officer, directors or partners and controlling shareholders, at all times (regulation 7).
- People: a principal officer and a compliance officer, both full-time employees based in the IFSC. The principal officer is optional, with IFSCA's approval, for a provider serving only its group entities in the IFSC (regulation 9).
- Clients: non-residents from jurisdictions not on the FATF call-for-action list. Financial institutions in an IFSC count as non-residents. Residents may be served only for setting up their office in the IFSC or overseas (regulation 10).
- Currency: operations and balance sheet in a specified foreign currency, with a rupee account for administrative and statutory expenses, and financial reporting in US dollars (regulations 11 and 12).
- Conduct: the Fourth Schedule code, including notice to IFSCA within ten business days if a promoter's or significant beneficial owner's home jurisdiction is added to the FATF call-for-action list, and adequate staff and infrastructure in the IFSC.
Process and fees
Applications are filed on SWIT with the documents and fee. If IFSCA finds deficiencies, the applicant has 30 days to cure them, and no application is rejected without a chance to make written submissions. After in-principle approval, the applicant has 180 days, unless extended, to meet the conditions. The certificate of registration then remains valid until suspended, cancelled or surrendered (regulation 6). Under IFSCA's fee circular of 2 March 2026, the fees are USD 1,000 on application, USD 2,500 on registration and an annual fee of USD 2,500. A turnover-based fee applies from USD 1 million of annual turnover. See IFSCA fees.
The 2026 amendment: trust and company service providers
The TechFin and Ancillary Services (Amendment) Regulations, 2026, notified on 5 May 2026, add a Chapter VA on trust and company service providers (TCSPs) for leasing activities permitted by IFSCA. A TCSP may act as agent in setting up companies, LLPs and trusts. It may act as, or arrange for another person to act as, trustee, director, company secretary, nominee shareholder or partner, and provide a registered office (Fifth Schedule). It must be a company or LLP in the IFSC. It needs a separate approval even if already registered under the regulations. Its principal officer must have at least five years' post-qualification experience in financial services. It must also keep professional indemnity cover, and keep client records for at least five years after the client relationship ends. See Aircraft leasing.
TechFin registration or the sandbox?
The FinTech Sandbox Framework, 2026 requires an applicant first to consider whether the TechFin and Ancillary Services Regulations fit (clause 7). If the business supplies technology to financial institutions, registration under the 2025 regulations is usually the right route. The sandbox is for testing innovative financial products or solutions that need a controlled environment. See Sandbox tracks.