IFSCA To Soon Launch Instant Payment Settlement Regulation, Says Chairman

Currently, such payments are cleared through the banking system, which is time-consuming. These changes will allow regulated entities to ensure instant payment settlements.

The International Financial Services Centres Authority (IFSCA) will soon come out with regulations to help regulated entities ensure instant payment settlements, its chairman said on Wednesday.

The authority is expecting final regulations for listing companies on the IFSC exchange to be in place within the next six months.

"We are coming up with payments regulations shortly, maybe in the next few months. This will enable regulated entities to provide these services to ensure instant settlement of payments," IFSCA Chairman K Rajaraman said while addressing the global fintech festival here.

Currently, such payments are cleared through the banking system, which is time-consuming.

"We believe that with these regulatory tweaks, we should be able to achieve substantial traction in terms of clearing the ground for some foreign players to move in to Gift City in a significantly large number," he said.

On the listing of firms on the IFSC exchanges, he said a "finance ministry notification on this is under process now. We have set up a working group that is coordinating with other regulators like Sebi and the Reserve Bank of India." "We believe necessary procedures and amendments should be completed in the next three months. We should be able to take the decision to go live by the end of this year," Rajaraman said.

The chairman said the authority is also working on a real-time gross settlement system, which will be possible in the next few months. If these two are done, then most of the payments related problems will be solved, he added.

Further, he said a number of companies from aviation and shipping sectors have set up shops in Gift City for leasing activities.

According to him, 2 aircraft and about 54 jet engines have already been leased out of these offices so far.

Air India and Indigo have also opened their IFSC units.

He also said two international lessors have set up shops in Gift City and for ship-leasing, some entities have received licences.

"So, we believe it is a great market. Still, some regulatory tweaks are required and we are working with the government, especially the administrative ministries of shipping and civil aviation," he added. 

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)