PayGlocal Technologies Private Limited has received in-principle approval from the International Financial Services Centres Authority (IFSCA) to set up a wholly owned subsidiary as a Payment Service Provider (PSP) in GIFT City, Gandhinagar. The approval covers account issuance including e-money accounts, cross border money transfers and merchant acquisition services. The regulated base will help PayGlocal build international payment capabilities from India for Indian exporters and global businesses.
What Is PayGlocal?
PayGlocal is India’s cross border payments infrastructure company that helps Indian merchants collect payments from customers in foreign countries and helps global merchants collect payments from India. The legal entity is PayGlocal Technologies Private Limited, incorporated on 18 March 2021 with CIN U72200KA2021PTC145531 and headquartered in Bengaluru, Karnataka. The company supports collections from more than 180 countries in over 120 currencies through cards, bank transfers and local payment methods.
PayGlocal was founded in 2021 by Prachi Dharani, Rohit Sukhija and Yogesh Lokhande, with Ruby Jain as a co-founding member. Prachi Dharani is the Co-founder and Chief Executive Officer (as of September 2026). The founding team earlier worked in senior roles at Visa, the global card network company. The company focuses on improving success rates for international card payments through smart routing, fraud checks and automatic generation of trade documents such as FIRA and FIRC.
FIRA means Foreign Inward Remittance Advice and FIRC means Foreign Inward Remittance Certificate. These are bank issued documents that prove foreign money has reached India. Exporters need these documents for compliance under Indian foreign exchange rules and for claiming export benefits.
PayGlocal holds two authorisations from the Reserve Bank of India (RBI) under Certificate No. 250/2025. The first is Payment Aggregator Online (PA-O), received in September 2024, for domestic online payments. The second is Payment Aggregator Cross Border Inward and Outward (PA-CB-I and O), received in November 2025, for moving money in both directions across India’s borders. The company has raised about $17 million across two rounds from investors including Tiger Global, Peak XV Partners and Beenext.
What Is IFSCA?
IFSCA stands for the International Financial Services Centres Authority. IFSCA is India’s unified regulator for all financial products, financial services and financial institutions inside an International Financial Services Centre (IFSC). IFSCA develops and regulates banking, capital markets, insurance, fund management, aircraft leasing and payment services inside these centres.
Parliament created IFSCA through the International Financial Services Centres Authority Act, 2019. Parliament passed the Act on 19 December 2019. The central government established IFSCA on 27 April 2020. IFSCA is headquartered at GIFT City, Gandhinagar in Gujarat. IFSCA functions under the overall oversight of the Ministry of Finance. The Chairperson of IFSCA is K. Rajaraman (as of September 2026).
Before IFSCA was formed, four domestic regulators shared control over IFSC business. The Reserve Bank of India (RBI) regulated banking, the Securities and Exchange Board of India (SEBI) regulated securities, the Insurance Regulatory and Development Authority of India (IRDAI) regulated insurance and the Pension Fund Regulatory and Development Authority (PFRDA) regulated pensions. The 2019 Act shifted these powers for IFSC operations to IFSCA. This single window design reduces overlap and improves ease of doing business for firms that need banking, securities and insurance approvals in one place.
| Regulator Before IFSCA | Role Shifted to IFSCA for IFSC Business |
|---|---|
| RBI | Banking and payment services in IFSC |
| SEBI | Securities, funds and capital markets in IFSC |
| IRDAI | Insurance and reinsurance in IFSC |
| PFRDA | Pension products in IFSC |
What Is GIFT City and Where Is It Located?
GIFT City means the Gujarat International Finance Tec-City. GIFT City is India’s first operational greenfield smart city and India’s only approved International Financial Services Centre (IFSC). GIFT City is located in Gandhinagar district in Gujarat, on the banks of the Sabarmati river between Ahmedabad and Gandhinagar.
GIFT City started operations in 2015. The central government and the government of Gujarat jointly developed the project. The master plan covers 886 acres. About 261 acres form a Multi Services Special Economic Zone (SEZ) which is notified as the IFSC. The remaining 625 acres form the Domestic Tariff Area (DTA) for domestic businesses, housing and social infrastructure.
An IFSC is a jurisdiction that provides financial services to residents and non residents in foreign currency. GIFT IFSC allows firms to transact in currencies such as the US dollar ($), euro (€) and British pound (£). The goal is to bring back to India the offshore financial business linked to India that earlier went to centres such as Singapore, Dubai and London. This idea is often called onshoring the offshore.
Firms in GIFT IFSC work under IFSCA as a single regulator instead of dealing separately with RBI, SEBI, IRDAI and PFRDA. Banks in the IFSC do not face domestic reserve rules such as the Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR) and Priority Sector Lending (PSL) targets. Financial services inside the IFSC attract zero rated Goods and Services Tax (GST) treatment. Eligible units can claim a 10 year income tax holiday in any 10 years out of the first 15 years of operation. IFSCA data shows that more than 1,150 entities were registered or authorised by end of March 2026, with total banking assets of about $111 billion.
What Is a Payment Service Provider in GIFT City?
A Payment Service Provider (PSP) in GIFT City is a company authorised by IFSCA to offer payment services inside the IFSC. A PSP collects, holds or moves money for users and settles payments with merchants through regulated accounts. In GIFT City the PSP must have its registered office inside the IFSC and must meet net worth and governance standards on a continuous basis.
The rulebook is the IFSCA (Payment Services) Regulations, 2024. IFSCA notified the regulations in January 2024, with effect from 30 January 2024, and amended them in April 2024. The regulations follow principle based design benchmarked to the payment laws of Singapore, the United Kingdom and the European Union. Any firm that wants to start payment services in or from the IFSC must first obtain a Certificate of Authorisation from IFSCA.
The regulations permit five payment services under a single authorisation. The PSP can be classified as a Regular Payment Service Provider or a Significant Payment Service Provider based on transaction volumes. A Regular PSP must hold net worth of $100,000 on the date of start of operations, rising to $200,000 by the end of the third financial year. A Significant PSP must hold $250,000 at start, rising to $500,000 by the end of the third financial year. Directors and key managers must meet fit and proper norms.
| Payment Service Under IFSCA Rules | Simple Meaning |
|---|---|
| Account issuance including e-money account issuance | Opening and operating a payment account for a user where money can be kept or withdrawn |
| E-money issuance | Issuing stored electronic money that the user can use to pay for goods and services |
| Escrow service | Holding money for two parties in a safe account until their deal is complete |
| Cross border money transfer | Sending or arranging money for a person in the IFSC or outside the IFSC |
| Merchant acquisition | Accepting and processing card or digital payments for a merchant and settling money to the merchant |
PayGlocal has received in-principle approval for three of these services. The three services are account issuance including e-money accounts, cross border money transfers and merchant acquisition. In-principle approval is the first stage. The parent company applies to set up a subsidiary. IFSCA checks the plan and issues the in-principle nod. The company then incorporates the unit in the IFSC, builds systems and meets conditions. IFSCA then grants the final Certificate of Authorisation. Operations can start only after this final certificate is issued.
Payment Service Provider Versus Payment Aggregator
A Payment Aggregator (PA) and a Payment Service Provider (PSP) sound similar but they work under different regulators and in different market areas. A PA is authorised by the RBI and serves the domestic Indian market. A PSP is authorised by IFSCA and serves the IFSC market in foreign currency. PayGlocal now holds positions in both systems, which is why the distinction matters.
The RBI defines a PA as an entity that collects payments from customers on behalf of merchants and then settles the money to merchants. The RBI issued the first PA guidelines in March 2020 and a full Master Direction on 15 September 2025. The RBI recognises three PA types. PA Online (PA-O) handles online payments where the card and machine are not present together. PA Physical (PA-P) handles face to face payments. PA Cross Border (PA-CB) handles import and export payments for e-commerce under foreign exchange rules, with separate inward and outward permissions.
The IFSCA defines a PSP as a company with its registered office in the IFSC that IFSCA authorises to offer one or more of the five payment services. The PSP framework is built for cross border flows, multi currency settlement and access to global correspondent banking networks. An e-wallet issued by an IFSC PSP cannot hold Indian rupees in any form. This rule keeps a clear line between domestic rupee business and IFSC foreign currency business.
| Feature | RBI Payment Aggregator | IFSCA Payment Service Provider |
|---|---|---|
| Regulator | RBI | IFSCA |
| Main law | Payment and Settlement Systems Act, 2007 with RBI directions | IFSCA Act, 2019 with Payment Services Regulations, 2024 |
| Market area | Domestic India plus approved cross border legs | In or from GIFT IFSC |
| Currency | Mainly Indian rupee (₹) | Foreign currencies such as dollar, euro and pound |
| Authorisation | RBI Certificate of Authorisation as PA-O, PA-P or PA-CB | IFSCA Certificate of Authorisation as PSP |
| Example holder | PayGlocal as PA-O and PA-CB-I and O | Proposed PayGlocal subsidiary as PSP |
A related confusion is IFSC versus IFSCA. IFSC means the International Financial Services Centre, which is the place and jurisdiction. IFSCA means the International Financial Services Centres Authority, which is the regulator. IFSC Code is a different term altogether. IFSC Code means the Indian Financial System Code, the 11 character code the RBI uses to identify bank branches for transfers such as NEFT and RTGS. It has no link to GIFT IFSC.
Why the Approval Matters for Cross Border Payments
The approval gives PayGlocal a regulated foreign currency base inside India. The company has said it will keep building technology and operations from India while developing international payment capabilities from GIFT City. This model supports Indian exporters, software firms, travel platforms, education providers and freelancers who collect money from buyers abroad. It also helps the company serve global merchants who want to collect from Indian buyers through local methods such as UPI and cards.
Cross border payments from India often suffer from low success rates, high fees and slow settlement through correspondent banks. A PSP in GIFT IFSC can offer multi currency accounts, hold money in foreign currency and settle through global banking partners under a globally aligned rulebook. IFSCA launched the Foreign Currency Settlement System (FCSS) in October 2025 to allow real time settlement between banking units in the IFSC. The traditional correspondent route can take 24 to 36 hours. Instant settlement lowers cost and improves cash flow for small exporters.
The move also fits the investment ecosystem of GIFT City. Banks, funds, insurers, aircraft lessors and fintech firms already operate from the centre. A payment provider adds the collection and payout layer that trade needs. IFSC banking units provided about $50 billion in trade finance in 2025-26. The centre aims to support India’s export goal of $2 trillion by 2030. For PayGlocal, the IFSC presence can improve compliance credibility with overseas buyers and banking partners who prefer to deal with a regulated IFSC entity.
Key Takeaways
- PayGlocal Technologies Private Limited received IFSCA in-principle approval to set up a wholly owned subsidiary as a Payment Service Provider in GIFT City, Gandhinagar.
- The approval covers account issuance including e-money accounts, cross border money transfers and merchant acquisition services.
- IFSCA stands for the International Financial Services Centres Authority, established on 27 April 2020 under the IFSCA Act, 2019 with headquarters in GIFT City.
- GIFT City is the Gujarat International Finance Tec-City in Gandhinagar, India’s only IFSC operational since 2015 across 886 acres.
- PayGlocal holds RBI Certificate No. 250/2025 as PA-O and PA-CB-I and O, and was incorporated on 18 March 2021 in Bengaluru.
