IFSCA proposes framework for unclaimed deposits in GIFT IFSC banking units

Draft scheme proposes a dedicated fund to manage unclaimed deposits, settle depositor claims and strengthen depositor education as banking activity expands in GIFT IFSC

The International Financial Services Centres Authority (IFSCA), the unified financial regulator in GIFT City, has proposed a framework for the management and utilisation of funds linked to unclaimed deposits by notifying the IFSC Depositor Education and Awareness Fund Scheme, 2026.

 

The regulator noted that, with the expanding volume of deposits, products and customer base in GIFT IFSC, establishing a dedicated framework for managing unclaimed deposits and safeguarding depositors' interests was necessary.

 

As of March 2026, customer deposits in banking units in the IFSC stood at $8.98 billion.

 

Unclaimed deposits and other eligible amounts remaining unclaimed for 10 years or more will be transferred to the fund, aligning the norms with those of banking regulations in the domestic market. The framework addresses the mechanism for settling depositor claims, reimbursement to banking units and utilisation for depositor education and awareness.

 

 

The draft scheme lays out the structure for a dedicated fund to handle such deposits, with a committee entrusted with its administration. The panel will oversee the investment of the fund’s corpus and approve expenditures, while ensuring that any outflows do not compromise the fund’s ability to refund eligible depositors.

 

As per the proposal, administrative costs, including committee expenses, will be met from the fund itself. The committee will also be required to share details of income and expenditure with the Authority to help determine the interest payable to depositors.