Introduction
On September 19, 2025, the International Financial Services Centres Authority (“IFSCA”) issued the Draft FinTech Sandbox Framework,1 (“Draft Framework”), a strategic initiative designed to empower both domestic and international entities to test disruptive financial technologies in a controlled, live environment. The Draft Framework seeks to promote the growth of fintech innovations at International Financial Services Centres (“IFSCs”) from Indian and foreign jurisdictions. This proposed framework aims to enhance financial services innovation by establishing structured facilitators such as Regulatory/Innovation/ Inter-Operable Regulatory Sandbox/Overseas Regulatory Referral Mechanism(s) for fintech activities spanning across Banking, Capital Market, Insurance, Funds, etc. The Draft Framework also addresses technology-enabled fintech/ techfin use cases pertaining to the financial products, financial services and financial institutions which are regulated or likely to be
