Payment Service Providers must use a risk-based framework to identify critical services received or planned to be received from Third-party Service Providers. Assessment is required at the commencement of operations and at regular intervals. Criticality must consider the service's financial, operational and strategic importance, acceptable disruption tolerance for dependent critical operations, the nature of shared data or information, and the ease or lack of substitutability of the service.

Payment Service Providers must maintain a Board-reviewed risk-management policy with policies, procedures and systems to identify, measure, monitor and manage risks arising from payment services. They must establish a robust operational risk-management framework with appropriate systems, policies, procedures and controls. Providers establishing links with Payment Systems must identify, monitor and manage link-related risks.

Payment Service Providers must document governance arrangements covering Board and senior management functions, reporting lines, ownership, internal governance, risk management, internal controls, appointment procedures, and performance accountability. Activities beyond Payment Services require prior permission and specified conditions. Providers must formulate clear service rules and procedures and provide users sufficient information to understand applicable risks, fees, and other material costs.

Payment Service Providers must begin operations within six months from issuance of the Certificate of Authorisation. An extension application requires board authorisation, timely submission, reasons for delay, the period sought, and remedial steps. Where satisfied that commencement cannot occur within the stipulated period, the Authority may grant one extension of up to three months.

Security deposits of Payment Service Providers may be appropriated following surrender or revocation of authorisation to discharge outstanding sums claimed by customer Payment Service Users. Release of the deposit or its balance requires that no such customer claims remain outstanding and that all surrender conditions have been fulfilled. Release is subject to a one-year period from approval of surrender or revocation, permitting legitimate outstanding claims or dues to be addressed.

A Payment Service Provider may apply to the Authority for surrender of authorisation in accordance with the conditions and format prescribed in Schedule III. Permission depends on satisfaction that surrender is unlikely to materially adversely affect the IFSC financial ecosystem or Payment Service Users' interests. Surrender may be permitted subject to appropriate conditions, and a written order may specify the date from which authorisation ceases to have effect.

Authorisation may be revoked where a Payment Service Provider breaches authorisation conditions, applicable regulatory requirements, or Authority orders or directions, or carries on payment services prejudicially to Payment Service Users' interests. An order revoking authorisation may be issued only after the concerned provider receives a reasonable opportunity of hearing.

Where authorisation cannot be granted because of deficiencies, the Authority must communicate them to the applicant and allow thirty days for rectification. Failure to rectify leads to refusal, subject to a reasonable opportunity of hearing. An applicant may withdraw an application before authorisation is granted. Following refusal or withdrawal, a fresh application may be submitted only after six months from communication of refusal or the date of withdrawal, respectively.

Eligible Payment Service Providers may receive a Certificate of Authorisation subject to conditions determined by the Authority. The certificate remains valid unless revoked or surrendered. Providers may be required to maintain a specified security deposit, identify an IFSC Banking Unit or IFSC Banking Company as Nodal Bank with its concurrence, and disclose material changes in previously furnished information. Conditions for commencing or carrying on Payment Services may be modified.

In-principle approval for payment service provider authorisation may be issued where an application prima facie meets the conditions for authorisation, subject to conditions imposed before authorisation is granted. It does not create an automatic entitlement to authorisation. Changes in ownership or control must be notified and trigger review, with the outcome communicated to the applicant. Revocation following review requires a reasonable opportunity of hearing before a final decision.

Payment Service Provider authorisation assessment considers the experience of relevant persons, including existing authorisation for similar services in another jurisdiction; adequate infrastructure and manpower; and compliance with the prescribed net worth requirement. It also considers financial soundness, fit and proper requirements, past refusals of authorisation, pending breach-of-law proceedings, and adequate protection of Payment Services Users' interests through the governing terms and conditions.

Applicants and Payment Service Providers must ensure that their directors, key managerial personnel, and persons exercising control meet the fit and proper requirements. The Authority may assess any Relevant Person during authorisation processing or at any later time. Where the applicant's or provider's assessment differs from the Authority's assessment, the Authority's assessment prevails.

Payment Service Providers must continuously maintain the prescribed minimum net worth. The threshold may be reviewed and adjusted to address emerging risks and changes in the financial environment. Any additional net-worth requirement arising from such review must be met within 180 days of communication. Corrective action may apply where net worth falls below applicable requirements, and providers may be required to conduct stress tests of their ability to withstand adverse economic scenarios.

Every applicant seeking authorisation under regulation 4 must be incorporated as a company and maintain its registered office in an International Financial Services Centre. Company incorporation and an IFSC registered office are mandatory legal-form and location conditions for an authorisation application.

Persons seeking to provide Payment Services in or from an IFSC must obtain authorisation as a Payment Service Provider through an application in the specified format and manner, accompanied by a non-refundable fee. Schedule IV persons are exempt. Authorised providers may offer services listed in Part A of Schedule I, while those also meeting Part C conditions are designated Significant Payment Service Providers.

Authorisation for Payment Services is mandatory for any person seeking to provide Payment Services in or from an International Financial Services Centre. A certificate of authorisation under the International Financial Services Centres Authority (Payment Services) Regulations, 2024 is required before commencing or carrying on such activity.

IFSC payment services cover specified authorised activities while excluding prescribed non-payment activities. Payment service providers are authorised companies serving payment service users as payers, payees, or both. Payment accounts, instruments, orders, and transactions govern the initiation and execution of payments. Account issuance, cross-border money transfer, e-money issuance, merchant acquisition, and escrow services are separately identified. E-money is prepaid electronically stored value in a specified foreign currency, accepted by persons other than its issuer and representing a claim on the issuer; deposits are excluded. The framework also addresses applicable funds, safeguarding institutions, agents, group entities, and third-party service relationships.

International Financial Services Centres Authority (Payment Services) Regulations, 2024 derive from powers under the International Financial Services Centres Authority Act, 2019. Regulation 1 prescribes their short title and provides that they enter into force upon publication in the Official Gazette. The provision concerns identification and commencement only, without setting out substantive authorisation, licensing, operational, compliance, or enforcement conditions.

BATF Services in an IFSC require registration, except for specified Ancillary Service Providers subject to transitional conditions. Applicants must be established as a company or limited liability partnership in the IFSC, maintain fit-and-proper status, and serve only eligible non-resident recipients. Safeguarding conditions prohibit business splitting, reconstruction or reorganisation involving existing Indian operations, asset transfers from Indian group entities, and transfer or replacement of existing group-entity contracts. Providers must appoint qualified IFSC-based Principal and Compliance Officers, operate in specified foreign currency, undertake prescribed reporting, and obtain annual independent compliance certification.

Faceless assessment applies to imports primarily under Chapter 29 in Appraisement Group 2A across Mumbai Customs Zones I, II and III. Covered Bills of Entry are assigned through the Customs Automated System to Faceless Assessment Groups. Nodal Commissioners must monitor speedy and uniform assessments and ensure procedures for verification, speaking orders, review, demand adjudication, provisional assessment, amendments, and electronic communication are followed. The Turant Suvidha Kendra supports relevant functions, while jurisdictional Customs Appeals Commissioners may hear appeals despite the assessing officer being located elsewhere.