International Financial Services Centres Authority (IFSCA) mandates net worth requirements and compliance deadlines for payment system operators

Key facts

• The International Financial Services Centres Authority (IFSCA) issued financial requirements for existing and new payment system operators in International Financial Services Centres (IFSCs) via a circular on October 27.
• Existing payment system operators have six months from the date of the circular to meet the prescribed requirements.
• Trade Receivables Discounting System (TReDS) operators must maintain a minimum net worth of $1 million.
• Legal Entity Identifier (LEI) issuers must maintain a minimum net worth of $200,000.
• Trade repositories must maintain net worth equivalent to at least one year's operating costs, and the calculation must be carried out every six months.
• Large-value payment systems and card payment networks are required to maintain a sound financial position.
• Net worth calculation includes paid-up equity capital, eligible reserves, and certain preference shares that must be converted into equity.
• Accumulated losses, intangible assets, and deferred revenue expenditure are deducted when calculating net worth.
• New applicants must submit a certificate from their statutory auditor confirming that they meet the applicable financial requirements along with their application.