**Executive Summary**
This circular, issued by the IFSCA on February 26, 2026, addresses delays in fund receipts by IFSC Banking Units (IBUs) related to SWIFT network remittances. It provides directions to IBUs to ensure uniform identification, efficient routing, and seamless processing of cross-border transactions. IBUs are required to report compliance by June 30, 2026, to the Department of Banking Supervision.
**Key Points / Main Content**
* **SWIFT Bank Identifier Code (BIC) Requirements:**
* IBUs must ensure their BIC name clearly reflects their presence in GIFT IFSC by including the words "GIFT IFSC Banking Unit."
* IBUs must identify messages related to their BIC and configure their SWIFT systems with appropriate routing rules.
* IBUs must widely disseminate their SWIFT BIC code through appropriate channels.
* IBUs must advise correspondent banks and clients to use the correct BIC for cross-border transactions and appropriately populate optional fields in SWIFT messages.
* **Communication and Reporting:**
* IBUs must utilise the SWIFT message broadcast facility to disseminate information regarding their BIC, at least once per quarter, starting with the quarter ending March 31, 2026, for one year.
* IBUs commencing operations after the issuance of this circular must follow these instructions from their operational start date.
* IBUs shall report compliance to the instructions of this circular to the Department of Banking Supervision by June 30, 2026.
* **Authority and Effective Date:**
* The circular is issued under the authority of Sections 12 and 13 of the International Financial Services Centres Authority Act, 2019, and regulation 20 of IFSCA (Banking) Regulations, 2020, and is effective immediately.
**Impact Analysis**
**Stakeholder: IFSC Banking Units (IBUs)**
* **Impact:** IBUs must modify their SWIFT-related operational procedures to comply with the new directions for BIC identification, routing, communication, and reporting.
* **Action Required:** IBUs must update their BIC naming conventions, configure SWIFT systems, disseminate BIC information, advise correspondent banks and clients, use SWIFT broadcast messaging, and report compliance by June 30, 2026.
Key Entities Referenced
IFSC Banking Units (IBUs): Entities subject to the SWIFT-related operational requirements outlined in the circular.
SWIFT: The Society for Worldwide Interbank Financial Telecommunication network, the subject of the operational directions.
International Financial Services Centres Authority Act, 2019: The act that confers powers to issue the circular.
IFSCA (Banking) Regulations, 2020: Regulations that powers to issue the circular read with.
International Financial Services Centres Authority: The issuer of the circular.
CIRCULAR
File No. IFSCA-FMPP0BR/12/2025-Banking February 26, 2026
To,
All IFSC Banking Units (IBUs)
Dear Madam/ Sir,
Subject: Directions on SWIFT-related operational requirements
1. Certain non-bank regulated entities have informed the Authority about cases of delay
in receipt of funds in their accounts with IBUs due to, inter alia, remittances using the
SWIFT network intended for the Nostro account of the IBU being wrongly credited to
the Nostro account of the bank in onshore India.
2. With a view to ensure uniform identification, efficient routing, and seamless processing
of cross-border transactions involving IBUs through the SWIFT network, all IBUs are
hereby directed to adhere to the following:
a. IBUs shall ensure that the name associated with their SWIFT Bank Identifier
Code (BIC) clearly reflects their presence in GIFT IFSC by including the words
“GIFT IFSC Banking Unit” in the BIC name (e.g., XX Bank Ltd. – GIFT IFSC
Banking Unit).
b. IBUs shall identify the messages related to their BIC that are currently being
received by the BIC of their onshore India operations and ensure that their
SWIFT systems are configured with appropriate routing rules so that such
messages are identified and automatically routed to the correct IBU BIC for
processing.
c. IBUs shall ensure that its SWIFT BIC code, are widely disseminated and made
easily accessible through appropriate channels such as their website,
brochures, customer communications, and other public-facing material.
d. IBUs shall advise their correspondent banks and clients to use the correct BIC
for all cross-border transactions and to appropriately populate the optional
fields in SWIFT messages so as to clearly indicate that the message is intended
for the IBU.
e. IBUs shall utilise the message broadcast facility provided by SWIFT to
disseminate information regarding their BIC. Such broadcast messaging shall
be undertaken once a quarter, starting with the quarter ending March 31, 2026,
for the next one year from the date of this circular.
Page 1 of 23. IBUs commencing their operations after the date of the issuance of this circular shall
follow these instructions from the date on which they begin operations.
4. IBUs shall report compliance to the instructions of this circular to the Department of
Banking Supervision by June 30, 2026.
5. This circular is issued in exercise of powers conferred by Sections 12 and 13 of the
International Financial Services Centres Authority Act, 2019, read with regulation 20 of
IFSCA (Banking) Regulations, 2020 (as amended), and shall come into force with
immediate effect.
6. A copy of this Circular is available on the International Financial Services Centres
Authority website at www.ifsca.gov.in
Sd/-
Supriyo Bhatacharjee
Chief General Manager
Head of Banking Department
supriyo.b@ifsca.gov.in
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