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Official TranscriptIFSCA FinTech Sandbox Framework, 2026 - Frequently Asked Questions (FAQs) A. About the Framework 1. What is the IFSCA FinTech Sandbox Framework and why has it been issued? The IFSCA FinTech Sandbox Framework provides eligible entities a controlled and monitored environment to develop and test innovative financial technology ideas, products, and solutions. It has been issued building on the...
IFSCA FinTech Sandbox Framework, 2026 - Frequently Asked Questions (FAQs) A. About the Framework
1. What is the IFSCA FinTech Sandbox Framework and why has it been issued? The IFSCA FinTech Sandbox Framework provides eligible entities a controlled and monitored environment to develop and test innovative financial technology ideas, products, and solutions. It has been issued building on the outcomes of the earlier FinTech Entity Framework 2022 (FE Framework), evolving global FinTech trends, and stakeholder feedback, with the aim of further supporting innovation across banking, capital markets, insurance, fund management, and other segments in the IFSC.
2. When does this Framework come into effect and does it replace earlier circulars? This Framework comes into effect immediately from March 16, 2026. All earlier circulars, frameworks, guidelines, and regulatory instruments relating to Sandbox activities in IFSCs including the FinTech Entity Framework, 2022 and Framework for Regulatory Sandbox 2020 stand superseded with immediate effect. However, actions taken under earlier instruments remain valid. Entities holding a valid Limited Use Authorisation under the FE Framework shall continue under that Circular until their existing authorisation expires.
B. Types of Sandboxes
3. What types of sandboxes are available under this Framework?
Four types of sandboxes are available: i. IFSCA FinTech Regulatory Sandbox (FRS) - Controlled live testing with a limited set of real customers, with possible regulatory relaxations/exemptions. ii. IFSCA FinTech Innovation Sandbox (FIS) - Testing in isolation from the live market using market-related data made available by Financial Institutions operating in IFSCs, without requiring physical presence in the IFSC.
iii. Inter-Operable Regulatory Sandbox (IoRS) - For hybrid financial products/solutions falling within the ambit of more than one Domestic Financial Sector Regulator and/ or IFSCA. iv. Overseas Regulatory Referral Mechanism / FinTech Bridge - A co-operation mechanism between IFSCA and overseas financial sector regulators for cross- border sandbox access.
4. Does an entity operating under the FIS have any different obligations compared to the FRS? Yes. Two important provisions of the Framework do not apply to FinTech Sandbox Entities (FSEs) operating under the FIS - namely, the user consent and compensation disclosure requirements (clause 20) and the books of accounts and currency requirements (clause 28). All other provisions of Part I of the Framework apply equally to FIS entities.
Page 1 of 235. What happens after a successful exit from the Inter-Operable Regulatory Sandbox (IoRS)? Post successful exit from the IoRS, the entity shall approach IFSCA and/or the Associate Regulator(s), as the case may be, for authorisation and seeking regulatory dispensation before launching the product(s)/solution(s) in the market. The entire IoRS process shall be conducted in compliance with the Standard Operating Procedure
(SOP) of the co-ordination group available on the IFSCA website.
C. Eligibility
6. Who is eligible to apply under this Framework? Both domestic and foreign entities may apply. Domestic applicants may include companies, LLPs, partnership firms or their Branches in IFSC, DPIIT-registered FinTech start-ups, entities regulated by a Domestic Financial Sector Regulator, and individuals or groups affiliated with recognised research/academic institutions, incubators, or accelerators in India.). Foreign applicants eligible to apply under this
Framework shall include: (a) Foreign FinTechs, being non-resident entities engaged in FinTech activities and established or incorporated outside India; and (b) foreign legal persons, or individuals or groups of individuals affiliated with duly recognised research or academic institutions, incubators, or accelerators outside India; provided in both cases that such applicants are based, incorporated, or operating from a jurisdiction that has not been identified by the Financial Action Task Force (FATF) as a 'High-Risk Jurisdiction subject to a Call for Action'."
7. What must the proposed FinTech idea/product/solution satisfy? The proposed idea/product/solution must use innovative technology in the core product, service, business model, or distribution model relating to financial products or services regulated or likely to be regulated by IFSCA. It must have the potential to significantly enhance existing financial services or products, a genuine need for testing in a controlled environment, clearly identified direct benefits to users or the financial ecosystem, and adequate risk management strategies to prevent any adverse impact.
D. Application Process
8. What is the step-by-step application process?
The process involves two stages: • Stage 1 - Preliminary Application: Submit through the SWIT (Single Window IT System) portal. The Authority will examine it within thirty (30) days to assess suitability of the proposed idea/product/solution.
[https://ifsca.gov.in/Pages/Contents/HowToApply • Stage 2 - Final Application: Only after the Authority confirms acceptance of the Preliminary Application can the Applicant submit a Final Application through SWIT, along with the applicable fee as per the IFSCA Fee Circular dated April 08, 2025. An Applicant cannot directly submit a Final Application without a prior accepted Preliminary Application [https://ifsca.gov.in/Pages/Contents/HowToApply] The applications are to be submitted only via SWIT Portal [www.swit.ifsca.gov.in]
9. What fees are applicable and where is the fee structure available? Page 2 of 23Applicable fees are prescribed under the IFSCA Fee Circular dated April 08, 2025, as amended from time to time. Fees are payable at the time of submitting the Final Application through the SWIT portal.
10. What are the supporting documents required for the application under the IFSCA FinTech Sandbox Framework? The supporting documents applicable to IFSCA FinTech Sandbox Framework may be referred in Annexure I.
E. Evaluation & Approval
11. On what key parameters will the application be evaluated? Applications will be evaluated on, inter alia: the profile of the Applicant; usage of innovative technology/processes; benefits to customers/investors and the ecosystem;
meaningful test scenarios and expected outcomes; risk-graded testing conditions; consumer protection mechanisms and data management practices; appropriate disclosure requirements and protection to users; clearly defined user rights and grievance redressal; and the intent and feasibility to deploy the solution post-testing.
12. Does the Framework permit market exploration for developed products within the IFSC financial services market? Yes. The Framework expressly enables FinTech Sandbox Entities to undertake market exploration for their developed products within the financial services market in the IFSC during the Testing Stage. Applicants may refer to clause 12(m) relating to evaluation of an Applicant's intent to undertake market-exploration activities within the IFSC and clause 19 relating to testing during the Testing Stage. Such activities, where permitted, shall be subject to the Boundary Conditions and other terms and conditions specified by the Authority..
13. Can the Authority grant regulatory relaxations or exemptions? Yes. Applicants may seek specific regulatory relaxations/exemptions by specifying them in the application along with relevant documents. The Authority reserves the right to grant, refuse, or grant with modifications such relaxations as it deems fit, after analysing the specific sandbox testing application.
14. What is the approval timeline and what is 'In-Principle Approval'? If satisfied that the Final Application fulfils the prescribed conditions, the Authority may grant an 'In-Principle Approval' within sixty (60) days. The Applicant must then fulfil conditions specified therein, which may include having at least one Testing Partner within thirty (30) days, unless extended by the Authority.
F. Testing Stage
15. How long is the Testing Stage and can it be extended? The Testing Stage has a maximum duration of twelve (12) months. This may be extended by a further six (06) months at the discretion of the Authority, upon receipt of a written request from the FSE.
Page 3 of 2316. What are Boundary Conditions and can the FSE change its product during testing? Boundary Conditions are the parameters specified in the Limited Use Authorisation letter, such as restrictions on duration, customer type, transaction limits, and geographic scope, within which the FSE must operate. Any material changes during the Testing Stage that may have a bearing on the Limited Use Authorisation must receive prior written approval from the Authority before being affected.
17. Do I need to be physically present in GIFT IFSC?
It depends on the sandbox type: i. Under FRS: Physical presence is generally not required; however, it is mandatory if testing involves holding customer funds requiring a bank account with an IFSC Banking Unit, or as directed by the Authority ii. Under FIS: Physical presence is not required; testing may be conducted fully remotely iii. Under IoRS and FinTech Bridges: Governed by applicable SOP/MoU terms
18. What are the key obligations of the FSE towards its users during the Testing Stage? The FSE must disclose the idea/product/solution being tested and inform users in writing of potential key risks. It must obtain written acknowledgment of risks from users, disclose whether compensation will be provided for potential losses during testing, and obtain express written consent before engaging users in sandbox testing. All these must be completed prior to onboarding any user.
19. What are the reporting obligations during and after the Testing Stage? During the Testing Stage, the FSE must submit monthly status reports (affirmed by its authorised representative) before the 10th of every succeeding month, covering key performance indicators, milestones, statistical information, fraud/incident reports, and actions taken. Any regulatory order affecting the FSE must be reported within fifteen
(15) days of receipt. Within thirty (30) days of expiry of the Testing Stage, the FSE must submit a final report covering key outcomes, performance indicators, incident reports, user complaint resolutions, and key learnings. All testing records must be maintained for seven (7) years from the date of exit from the sandbox.
G. Financial Requirements
20. What are the currency and financial reporting requirements? FSEs operating under the FRS must transact in foreign currency as specified in the First Schedule of the IFSCA (Banking) Regulations, 2020, though administrative expenses may be defrayed in INR. Records must be maintained in freely convertible foreign currency (other than INR) and financial information submitted to the Authority in US Dollars. Audited annual financial statements must be furnished within thirty (30) days of finalisation, along with a statement or independent third-party certificate covering sandbox financials.
H. Exit & Revocation
21. What happens when the Testing Stage ends or the FSE wishes to exit early? Page 4 of 23The Limited Use Authorisation, along with all regulatory relaxations/exemptions, expires at the end of the Testing Stage. An FSE may apply for early exit by providing detailed written reasons, but exit is permitted only with the Authority's approval. Before exiting, the FSE must ensure all obligations to users are fully complied with or addressed.
22. On what grounds can the Authority revoke the Limited Use Authorisation? The Authority may revoke the authorisation if the FSE obtained it on the basis of incomplete or wrong information; fails to put in place risk-mitigating measures; submits false or misleading information; violates statutory/regulatory requirements adversely affecting its functioning; suffers reputational loss impacting user engagement; faces insolvency/liquidation proceedings; compromises digital security of the IFSC financial market; carries on business detrimental to users or the public; fails to address recurring technical defects or vulnerabilities; or fails to comply with the Framework or directions of the Authority.
23. Is prior notice given before revocation and what must the FSE do after revocation? Yes, prior notice and an opportunity to file written submissions shall be given before revocation. However, the Authority may suspend the authorisation without prior notice if it is of the opinion that it is necessary or expedient to do so in the interest of the financial services market or the public. Upon revocation, the FSE must immediately implement its exit plan, notify users of their grievance redressal rights, dispose of all confidential user information, and submit an exit action report to the Authority within thirty (30) days.
I. Permissible Activities
24. What financial sectors and activities are covered under this Framework? Applicants may develop and/or test FinTech solutions linked to Capital Markets (corporate finance, sustainable finance, market infrastructure, investment funds), Banking (finance company, aircraft/ship leasing, payment services and systems), Insurance or Re-Insurance, Pension, Metals and Commodities, Foreign University, Financial Support Services as per Appendix-2, compliance and supervision activities, and any other area permitted by the Authority.
25. What TechFin and Ancillary Services are permitted under Appendix-2? Appendix-2 covers a broad range of permitted services. Key Ancillary Services include actuarial, advisory, auditing, compliance management, legal, risk management, valuation, fund administration, and family office support services, among others. Key TechFin Services include AI/ML, big data and analytics, cybersecurity, cloud computing, digital identity/KYC/AML/CFT, fraud detection/prevention, Distributed Ledger Technology (DLT), RegTech, supervisory technology, quantum tech, Web 3.0, and space tech, among others. Applicants should refer to the full list in Appendix-2 of the Framework.
Page 5 of 23J. Contact & Further Information
26. Who should be contacted for queries and where can the full Framework be accessed? For any queries or clarifications, applicants may contact the Division of FinTech Sandbox, Department of Technology, IFSCA at fe-sandbox@ifsca.gov.in. The complete text of the Circular and Framework is available on the official IFSCA website at www.ifsca.gov.in.
K. Annexures
27. What is the purpose of Annexure I and Annexure II? Annexure I provides an checklist of supporting documents that may be required during the application process and Annexure II provides reporting formats for facilitating compliance with the reporting requirements under the Framework. The applicable requirements shall be governed by the IFSCA FinTech Sandbox Framework, the relevant application forms, instructions available on the SWIT Portal and such other directions as may be issued by the Authority from time to time.
The FAQs are illustrative and should be read in conjunction with the full text of the Circular. In case of any discrepancy, between the FAQ and the provisions of any applicable Act, Regulation, Rule,
Circular, Framework or other regulatory instrument, the latter shall prevail.
Page 6 of 23Annexure I Supporting Documents - Checklist Checklist Item (All Sr. documents to be signed and Supporting Documents / Sub-items No. stamped by Authorised Representative) 1 Incorporation and Company:
Commencement of Certificate of Incorporation AND Certificate of Commencement of Business Business Documents LLP / Partnership Firm:
For Indian Entity:
Certificate of Registration
For Foreign Entity:
Foreign Entity:
Equivalent Incorporation and Commencement of Business documents as applicable 2 Constitutional Documents Company:
For Indian Entity: Memorandum of Association (MoA) AND Articles of Association (AoA)
For Foreign Entity: LLP / Partnership:
LLP Agreement / Partnership Agreement
Foreign Entity:
Relevant constitutional documents as applicable 3 Certificate of Good Certificate of Good Standing from the jurisdiction of incorporation Standing (As applicable for Foreign Entities only) 4 Copy of Board Resolution (i) Make an application to IFSCA (under Sandbox / Authorisation) and execute or provide necessary Authorising Director(s) / documents on behalf of the Entity to IFSCA from time to time Designated Partner(s) / (ii) Incorporate / set up unit in IFSC (if applicable) Authorised Person(s) to:
Page 7 of 23Checklist Item (All Sr. documents to be signed and Supporting Documents / Sub-items No. stamped by Authorised Representative)
(iii) Pursue business activities different from those for which the applicant is licensed (if applicable)
(iv) Appoint a Designated Director for AML/CTF/KYC compliance obligations 5 Application Form and all Signed and stamped copy of the complete CAF and all Annexures being submitted, executed by the Annexures — Signed and Authorised Representative as per the Board Resolution Stamped (Company rubber stamp by the Authorised Person as per Board Resolution at Sr. 4 above) 6 Self-Attested Proof of (i) Founder(s) Identity and Proof of (ii) Directors in executive role Address (KYC)
(iii) Authorised Signatory as mentioned in the application form
Of the following persons:
(iv) Persons exercising Control* *Control includes the right to appoint majority of directors or to control management/policy decisions, directly or indirectly, including via shareholding, management rights, shareholders' agreements, voting agreements, or any other manner.
7 Director Identification Copy of DIN / DPIN as applicable for all directors / designated partners Number (DIN) / Designated Partner Identification Number (DPIN) 8 Latest Shareholding Pattern (a) The Applicant entity To be submitted in the (b) Holding / Subsidiary / Associate Company (if applicable) prescribed format (see below)
for:
Prescribed format:
Page 8 of 23Checklist Item (All Sr. documents to be signed and Supporting Documents / Sub-items No. stamped by Authorised Representative) Instrument Name of the Nationality for Amount Latest % Shareholder or Individual Invested Holding Investor shareholders/Country of (and (as Registration for Institutional Currency) on_____) Investors Equity Shares Preference /Converitibles - Others - TOTAL 9 KYC Documents - (i) KYC documents of person(s) holding 10% or more shares in the Applicant Company Shareholders / Persons (ii) KYC documents of Persons exercising Control over the Applicant Exercising Control
(iii) If any Partnership / Company / Trust / Entity holds 10% or more shares — their shareholding break- up in the prescribed format at Sr. 8 above; AND
(iv) KYC proofs for such entities and their UBO:
Company: Sr. 1 & 2 documents + KYC of executive directors and persons exercising control
LLP: Sr. 1 & 2 documents + KYC of designated partners
Trust: PAN, Registration, Trust Deed + KYC of trustees and settlors 10 Application Fee Payment (i) Proof of payment of application fees — SWIFT MT 103 or UTR Number Details (ii) Schedule II of the said Fee Circular may also be submitted to the Division of FinTech Sandbox for As per the IFSCA Fee Circular record purposes dated March 02, 2026, as amended from time to time 11 Technical Documents (i) Technical architecture including deployment diagram
(ii) Technology stack for Front-end, Back-end, Middleware and Database Page 9 of 23Checklist Item (All Sr. documents to be signed and Supporting Documents / Sub-items No. stamped by Authorised Representative)
(iii) Usage of Artificial Intelligence, Machine Learning or Decentralised Ledger Technology / Blockchain, if any
(iv) Details of any Intellectual Property Rights (whether applied / granted) with relevant documents
(v) Security Assessment Report / VAPT Audit Report and Certificate by CERT-In empanelled auditor
(vi) Relevant ISO certificates and other certifications / reports / assessments, if any
(vii) Technology Readiness Level of the product being proposed 12 Pitch Deck / Concept Note Pitch deck / Concept Note of the activities proposed for testing in the Sandbox, including:
Technicalities and roadmap of the proposed solution Overall business model in the context of GIFT IFSC Employment planned in GIFT IFSC 13 Business Plan with Business Plan including financial projections for the proposed activities Financial Projections 14 Audited Financial Audited Financials for the last 3 financial years Statements 15 MoUs / Agreements / LOI MoUs / Agreements / Letter of Intent (LOI) etc. with Financial Institutions as applicable for sandbox with Financial Institutions testing under the IFSCA FinTech Sandbox Framework 16 Regulatory Licences / Licences / Authorisations / Approvals obtained from Regulator(s) in Domestic and / or Foreign Authorisations / Approvals Jurisdiction(s), as applicable 17 Details of Pilot(s) Details about Pilot(s) done in Domestic and / or Foreign Jurisdiction(s) conducted Page 10 of 23Checklist Item (All Sr. documents to be signed and Supporting Documents / Sub-items No. stamped by Authorised Representative) 18 Preferred Boundary Document specifying the preferred Boundary Conditions proposed by the Applicant for testing in the Conditions for Sandbox IFSCA Sandbox Testing 19 Declaration - No Regulatory Declaration stating that no regulatory, statutory, or any kind of action, penalty, fine etc. has been taken / Statutory Action / imposed against:
On the letterhead of the The Company, its Related Entities, Group and Interlinked Companies; or Applicant, signed by the Any of its Promoter(s), Director(s) / Designated Partner(s), Key Managerial Person(s), Authorised Authorised Signatory Person(s) by any law enforcement / regulatory agencies, Regulatory Body, Ministry, Authority etc. in any Jurisdiction; or that any of them are / were undergoing / involved in any investigation / disciplinary action / legal or regulatory violations / criminal case 20 General Declaration cum Declaration as per CAF Section I covering:
Undertaking (a) Completeness and authenticity of information submitted On the letterhead of the (b) Activities in IFSC are in line with the MoA / Prospectus object clause Applicant, signed by the
(c) Fit and Proper status of the applicant and its functionaries Authorised Signatory
(d) Ring-fencing of GIFT IFSC operations (if applicable for branch)
(e) Undertaking to notify IFSCA of any material change
(f) Funds not from proceeds of crime
(g) Compliance with IFSCA Act 2019 and all regulations / circulars / guidelines
(h) Abidance by operational instructions / directives issued by IFSCA
(i) Furnishing any further information as sought by IFSCA 21 Fit and Proper Declaration FIT AND PROPER DECLARATION (on letterhead of the Applicant Entity) Page 11 of 23Checklist Item (All Sr. documents to be signed and Supporting Documents / Sub-items No. stamped by Authorised Representative) On the letterhead of the We, _________(name of Entity), represented by __________________(name of Authorised persons Applicant, signed and as per Board resolution) hereby declare that we, our directors/ partners/ designated partners, principal stamped officer, key managerial and our controlling shareholders are and shall be and always meet the “fit and proper persons” criteria.
We further declare that: a. We have a record of fairness and integrity, including but not limited to:
I. Financial integrity, good reputation, character and honesty; ii. absence of convictions and restraint orders; iii. competence, including financial solvency b. None of us have incurred any of the following disqualification:
i. been convicted by a court for any offence involving moral turpitude or any economic offence; ii. a recovery proceeding has been initiated against the person by a financial regulatory authority and is pending;
an order for winding up has been passed against such person for malfeasance; iii. has been declared insolvent and not discharged; iv. an order, restraining, prohibiting or debarring the person from accessing or v. dealing in financial products or financial services has been passed by a competent authority, and a period of three years from the date of the expiry of the period specified in the order has not elapsed;
vi. any other order against the person, has been passed by any regulatory authority,and a period of three years from the date of the order has not elapsed; vii. the person has been found to be of unsound mind by a court of competent jurisdiction, and the finding is in force;
viii. the person is financially not sound or has been categorized as a willful defaulter; ix. the person has been declared a fugitive economic offender; or x. the person suffers from any other disqualification as may be specified by the Authority.
Page 12 of 23Checklist Item (All Sr. documents to be signed and Supporting Documents / Sub-items No. stamped by Authorised Representative) 22 Fit and Proper Criteria Document Fit and Proper Criteria On the letterhead of the (on letterhead of the Applicant Entity) Applicant, signed and For, all the questions below, provide details for the past 8 years.
stamped We, _________(name of Entity), represented by __________________(name of Authorised person Details to be provided for the as per Board resolution) hereby declare the following for our functionaries*:
past 8 years for all functionaries Sr. No. Particulars Comments/Remarks 0 Whether any of the functionaries or any of the entities associated with9 the functionary have been refused a Registration/ Authorisation/ License by the IFSCA or any other regulatory authority or their Registration/ Authorisation/ License has been suspended at any time prior to this application.
(If Yes, provide details. If No, enclose a declaration to that effect).
9for this Section, a person is said to be ‘associated with’ an entity if he/she is/ was a functionary of the entity Page 13 of 23Checklist Item (All Sr. documents to be signed and Supporting Documents / Sub-items No. stamped by Authorised Representative) 1 Whether the functionaries or any relative of the functionaries of the companies/ entities in which the applicant is/ was associated with9, are in default or have defaulted in the past in respect of credit facilities obtained from any entity or bank? (If yes, please furnish information about the default and the name of the lending institution.
2 Whether any of the functionaries have been disqualified to act as promoter/ director/ key managerial personnel under any law in any jurisdiction where the applicant entity or the group companies of the applicant entity are operating? If yes, please furnish details.
3 Name/s of the companies, firms, partnership firms, in which any of the functionaries hold substantial interest.
4 Whether any of the functionaries are/ were undergoing/ involved in any investigation/ disciplinary action/ legal or regulatory violations/ criminal case by any law enforcement/ regulatory agencies? If yes, please furnish details.
5 Whether any order has been passed by any bankruptcy/ resolution authority against any company/ entity with which any of the functionaries are/ were associated9? If yes, please furnish details.
Page 14 of 23Checklist Item (All Sr. documents to be signed and Supporting Documents / Sub-items No. stamped by Authorised Representative) 6 Whether any of the functionaries have been convicted by a court for any offence involving moral turpitude or any economic offence or any offence against securities laws? If yes, please furnish details.
7 Whether a recovery proceeding has been initiated against any of the functionaries by a financial regulatory authority and is pending? If yes, please furnish details.
8 Whether an order for winding up has been passed against any of the functionaries for malfeasance? If yes, please furnish details.
9 Whether an order restraining, prohibiting or debarring any of the functionaries from accessing or dealing in financial products or financial services, has been passed by any regulatory authority/ courts, and a period of five years from the date of the expiry of the period specified in the order has not elapsed? If yes, please furnish details.
10 Whether any other order against any of the functionaries, which has a bearing on the securities market, has been passed by any regulatory authority, and a period of five years from the date of the order has not elapsed? If yes, please furnish details.
11 Whether any of the functionaries i) have been declared insolvent and not discharged? Page 15 of 23Checklist Item (All Sr. documents to be signed and Supporting Documents / Sub-items No. stamped by Authorised Representative) If yes, please furnish details.
ii) have been found to be of unsound mind by a court of competent jurisdiction and the finding is in force? If yes, please furnish details. iii) are financially not sound or have been categorized as a wilful defaulter? If yes, please furnish details.
iv) have been declared a fugitive economic offender? If yes, please furnish details.
I/We declare that all the functionaries have a record of fairness and integrity, including but not limited to financial integrity, good reputation, character and honesty.
I/We undertake to bring to the notice of IFSCA within one week, if any of the above actions is initiated against any of the functionaries in future. *Functionaries include: Promoters, Founders, Directors / Partners / Designated Partners, KMPs, Principal Officers, Persons / Shareholders with 10%+ share / voting rights / distributable dividend, Trustees, Authorised Representatives, and any other person as may be specified.
Page 16 of 23Annexure II PROGRESS REPORTING FORM FOR FINTECH SANDBOX ENTITY Please complete both Parts I, and Part II of this reporting form and submit it to fe- sandbox@ifsca.gov.in as per the timelines mentioned in the Reporting milestones.
PART I – GENERAL INFORMATION Name of Organisation (FinTech Sandbox Entity) LUA Number Type of Sandbox Category As per Appendix I and II of the IFSCA FinTech Sandbox Framework Jurisdiction Brief Description of use case Authorised Person Email and Contact No.
Sandbox Period Click or tap to enter a date. to Click or tap to enter a date.
Reporting Milestone1 Choose an item.
Date of Submission Click or tap to enter a date.
Note:
1. Reporting milestone refers to following:
Sl No Milestone Timeline from date Reporting obligation of issue of LUA 1 M1 10th day of the Monthly Status Report for succeeding month the reporting month 2 M2 Ad hoc Event Based reporting 3 M3 Within 30 days after Final Test Report the expiry of Limited Use Authorisation / Exit by written request
2. The FinTech Sandbox Entity (FSE) is required to submit to IFSCA:
1 There are following reporting milestones which should be complied by the FinTech Sandbox entity :
Page 17 of 23(a) a progress report on every milestone from the start of the approved Sandbox period; and
(b) a final report within 30 days from the expiry of the approved Sandbox testing period.
3. IFSCA may request for clarifications from the FSE or for the FSE to provide a demonstration of the use case being tested under the respective sandbox.
PART II – PROGRESS REPORT When Sandbox Entity chooses M1
1. Details regarding Monthly Status Report:
Sl. KPI/ Boundary Completed Attachment, Remarks, Inputs/ No Conditions (Yes/ No) Yes/ No if any Target progress prescribed under the achieved LUA 1 Boundary Condition 01 2 Boundary Condition 02 3* …………..
4 User complaints / Operational/ Cyber Security incident/ data breach/ Incidents this NA period (details of these incidents occurred during the month) 5 Actions taken to address incidents reported above (steps NA taken or in progress to resolve each incident reported) 6 Late Fee NA NA 7 Additional submissions if any <attach PDF as applicable> * Note: Applicants may append additional rows as necessary to reflect all specific boundary conditions prescribed under the Limited Use Authorisation (LUA)..
When the Sandbox Entity chooses M2
2. Adhoc / Event based Reporting - Annual Financial Statements (to be submitted within 30 days of finalisation; where full audited statements are unavailable, a certificate from an independent third-party professional shall be submitted in lieu thereof) / Exit Request / Material Change information request / Regulatory Order / Extension Request or any other ad hoc reporting as applicable [Submission may be attached with a PDF detailing the request signed and sealed by Authorised Representative with relevant documents as attachment] Page 18 of 23Sl Particular Submission Remarks, if any No 1 Auidted Financial Statement / where full audited statements are unavailable, a certificate from an independent third- party professional shall be submitted in lieu thereof 2 Extension Request 3 Exit Request 4 Chage in Authorised Representative 5 Material Change information request 6 Regulatory Action related Reporting 7 Any other as applicable <Attach PDF as applicable> When the Sandbox Entity chooses M 3 - Final Report Submission
3. Test Report SL Final Report should contain Submission Attachment No following information i Ex ecutive Summary ii O verview of the Sandbox Test and Description of Product/Solution iii St atus of Compliance with Boundary Achieved / Not Conditions achieved iv Bo undary conditions and its compliance with each boundary condition separately called out with additional documents v De tailed record of, user complaints, incidents, cyber security, data breach incidents, Operational failures, technical issues and action taken by the FinTech Sandbox Entity for the resolution in this regard vi Ke y Learnings Including but not limited to technical learnings, Regulatory insights, Business model viability, Risk-related learnings Page 19 of 23vii Fin ancial information (including but not limited to revenue and expenditure) to be submitted in USD viii Du ly certified audited annual financial <Detailed PDF to statements to be submitted within 30 be attached days of finalisation. Where audited signed by statements are not available, a Authorised certificate issued by an independent Representative > third-party professional in this regard shall be submitted.
ix Op erational & Technical Performance x Da ta Governance & Security xi Re gister of issues, complaints and feedback (e.g. technical, business, customer feedback) arising or outstanding since the commencement of the approved period and the actions taken to resolve them xii De tailed description on User Protection and Consent Tracking including details of total users, consents obtained, disclosures, complaints and resolution if any xiii Ex it Strategy xiv Co mpliance report (Part III in the NA < PDF to be given below format with attached signed substantiating documents attached by Authorised as annexures) Representative > xv Se lf-Declaration (Part IV) NA < PDF to be attached signed by Authorised Representative > xvi Ad ditional documents, if any NA PDF Attachment (Annexures or any additional if applicable documents to be submitted by the FSE as PDF) Page 20 of 234. COMPLIANCE REPORT (to be submitted at M3) To be submitted on the letterhead of the FSE To, International Financial Services Centres Authority 2nd & 3rd Floor, PRAGYA Tower, Block 15, Zone 1, Road 1C, GIFT SEZ, GIFT City, Gandhinagar, Gujarat
Date: ………………..
Dear Sir / Madam
Sub: Compliance Report This is to certify that ……………………………………………. has complied with the IFSCA FinTech Sandbox Framework, 2026, the circulars or guidelines issued thereunder; and otherapplicable laws for the Sandbox Period ending on……….. and confirm compliance of the
following:
Particulars Compliance Remarks The FSE and its operations in IFSCA FinTech Yes/No If no, please Regulatory/Innovation Sandbox are in compliance with provide the the IFSCA FinTech Sandbox Framework, 2026 (Circular details eF.No.: 505/IFSCA-FTec0FTEF/1/2023 dated March 16,
2026) and other applicable circulars, guidelines, instructions and directions etc issued by IFSCA or any other Competent Authority.
There is no instance of breach of IFSCA (Anti Money Yes/No If no, please Laundering, Counter Terrorist-Financing and Know Your provide the Customer) Guidelines, 2022 during the Sandbox period details for the FE The FSE has not, in any manner, used its status of its Yes/No If no, please Limited Use Authorisation for any purpose other than for provide the which it was provided LUA details The FSE and its authorized representatives, directors/ Yes/No If no, please partners/ designated partners, key managerial personnel provide the and controlling shareholders have been fit and proper details persons at all times during the Sandbox period.
The FSE has disclosed to its users that the solution Yes/No If no, please operated in a IFSCA FRS/FIS and the potential key risks provide the associated with the solution. The FSE has disclosed details whether any compensation will be provided for potential losses during the sandbox testing stage, along with the applicable protection and compensation terms, and has Page 21 of 23obtained express written consent from users before engaging them in sandbox testing.
Approval for Material changes to the solutions were Yes/No If no, please taken from IFSCA in advance and basic changes provide the intimated to IFSCA. details The FSE committed adequate and competent resources Yes/No If no, please to undertake the testing and implement risk mitigation provide the solutions that have been proven to be effective in details containing the consequences of failure The FSE had ensured proper security systems to protect Yes/No If no, please against cyber threats, data leakage, payment security is provide the in place. All relevant certifications have been provided in details this regard.
The FSE has maintained its books of accounts and Yes/No If No, please records in a freely convertible foreign currency (other provide the than INR) as declared at the time of Final Application and details has submitted financial information to IFSCA in US Dollar (unless otherwise specified by the Authority), in compliance with the applicable framework.
The FSE shall ensure that any existing obligation to the Yes/No If No, please users of the FinTech innovation(s) in the sandbox are provide the completely fulfilled or addressed before exiting the details sandbox or before discontinuing the sandbox testing.
The FSE shall maintain records of acknowledgement of Yes/No If No, please all its users stating that all the obligations towards the provide the users have been met. details
Any other material information that has a bearing on Sandbox Exit: __________________________________________________________________________ __________________________________________________________________________ For and on behalf on <Name of FSE> Authorized Representative
Name: …………………………… _________________________ Signature
Date: …………… Page 22 of 231. Self-Declaration (to be submitted at M3) Declaration (please note that all boxes must be checked for the entity) ☐ I declare for and on behalf of the FinTech Sandbox entity that the entity has developed/tested the specific use case(s) approved by IFSCA ☐ I declare for and on behalf of the FinTech Sandbox entity that all the conditions imposed on the entity, have been and are complied with.
☐ I declare for and on behalf of the FinTech Sandbox entity that all the representations (including declarations) made by the entity to IFSCA remain true, accurate and not misleading. ☐ I declare for and on behalf of the FinTech Sandbox entity that all the information given in this form, including all supporting documents and attachments, is true, accurate and not misleading.
☐ I declare for and on behalf of the FinTech Sandbox Entity that all the proper records of the tests conducted by it are duly maintained for review by authority and such records shall be maintained for a period of seven years from the date of its exit from the Sandbox.
For and on behalf on <Name of FSE> Authorized Representative
Name: …………………………… _________________________ Signature
Date: …………… ****** Page 23 of 23