IFSCA FinTech Incentive Scheme — Grants up to ₹75 Lakh for Fintechs at GIFT City
A regulator that pays fintechs to build inside its jurisdiction
IFSCA regulates GIFT City, India's international financial services centre. Its FinTech Incentive Scheme, notified in 2022, gives grants to fintech companies that set up in the IFSC, test in its sandbox, run proofs of concept with IFSC institutions or list on its exchanges. The stated purpose is a world-class fintech hub at GIFT; the practical effect is non-dilutive money for fintechs willing to operate under IFSCA's framework.
Both domestic and foreign fintechs are eligible — the scheme explicitly targets international markets, IFSC exchange listings and access to the Indian IFSC market. On 16 March 2026 a new FinTech Sandbox Framework replaced the 2022 FinTech Entity Framework, restating how sandbox and innovation-sandbox authorisations work; grants continue under the incentive scheme.
The grant categories
| Grant | Ceiling | Purpose |
|---|---|---|
| FinTech Start-up Grant | ₹15 lakh | Developing a product with a novel fintech idea to minimum viable product and go-to-market |
| Proof of Concept Grant | ₹50 lakh | A PoC by an early or mature fintech in the domestic market or overseas, with an IFSC nexus |
| Sandbox Grant | ₹30 lakh | Experimenting in the IFSCA sandbox with innovative products or services |
| Green FinTech Grant | ₹75 lakh | Solutions for sustainable finance, sustainability-linked finance and ESG investment |
| Accelerator Grant | ₹10 lakh per cohort | For accelerators at GIFT IFSC |
| Listing Support Grant | As per scheme | Domestic fintechs listing on recognised IFSC stock exchanges |
IFSCA's FinTech Department
IFSCA's FinTech Department receives applications, evaluates them against the scheme's guidelines and the applicant's sandbox or IFSC status, and recommends to the Authority. Grants are disbursed against milestones and deliverables.
Fintech with an IFSC nexus
- •Fintech entity — Indian or foreign — with a novel idea or solution
- •Operating in GIFT IFSC, admitted to the IFSCA sandbox, or running a PoC with an IFSC-regulated entity, as the grant category requires
- •For the Startup Grant: focus on converting the idea into a minimum viable product
- •For the Green FinTech Grant: a sustainable-finance or ESG use case
- •Compliance with the FinTech Sandbox Framework 2026 where sandbox entry is involved
What IFSCA's application needs
- •Certificate of Incorporation (Indian or foreign), constitutional documents, shareholding and directors
- •IFSC unit registration, sandbox authorisation or PoC partner agreement, as applicable
- •Product description, technology architecture and the innovation claimed
- •Project plan with milestones, deliverables, budget and timeline for the grant category
- •Financial statements; funding history; bank details of the IFSC entity
- •Regulatory approvals held elsewhere (RBI, SEBI, foreign regulators) and any pending
- •Founder and key-person KYC; fit-and-proper declarations
Questions founders ask about the IFSCA scheme
You need an IFSC nexus appropriate to the grant — typically an IFSC unit or a sandbox authorisation. Many fintechs set up a GIFT City subsidiary for this purpose while the parent stays where it is.
Different categories serve different stages; IFSCA has permitted sequential grants where the activities are distinct. Each application is evaluated on its own.
Tax treatment depends on the IFSC unit's status and the nature of the grant; IFSC units enjoy specific tax benefits. We advise on this at structuring stage.
The FinTech Sandbox Framework 2026 superseded the 2022 FinTech Entity Framework from 16 March 2026, consolidating sandbox categories and authorisation steps. Grant categories under the incentive scheme are unchanged.