IFSCA Proposes IDEA Fund Scheme 2026 for Unclaimed Deposits in GIFT IFSC

What was decided

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. Despite the word "notifying" used in some coverage, the underlying regulatory document is a draft: IFSCA has issued a consultation paper on the draft IFSC Depositor Education and Awareness Fund (IDEA Fund) Scheme, 2026 and invited public comments by August 12, 2026.

Under the scheme's own drafting, the "effective date" — i.e., when it actually takes legal force — is the date on which this Scheme is notified in the Official Gazette, which had not occurred as of 24 July 2026. This page will be updated once formal Gazette notification is confirmed.

Why IFSCA acted

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. The move brings GIFT IFSC banking units in line with the domestic banking system, where a similar Depositor Education and Awareness Fund already operates under the Reserve Bank of India. 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.

Legal basis and scope

The proposed Scheme, to be notified under the IFSCA Act, 2019 read with Section 26A of the Banking Regulation Act, 1949, provides for establishment and administration of the IDEA Fund, transfer of unclaimed deposits and other eligible amounts remaining unclaimed or inoperative for ten years or more, settlement of depositor claims and reimbursement to Banking Units, constitution of a Committee for administration of the Fund, maintenance, audit and investment of the Fund, and utilisation of the Fund for depositor education, awareness and promotion of depositor interests.

The draft defines an Amount due as any credit balances in any account or any deposit in a Banking Unit remaining unclaimed or inoperative for ten years or more, and applies to entities licensed as a Banking Unit defined under clause (c) of sub­section (1) of Section 2 of the International Financial Services Centres Authority (Banking) Regulations, 2020.

Operative mechanics

The framework addresses the mechanism for settling depositor claims, reimbursement to banking units and utilisation for depositor education and awareness. A dedicated Committee is to be constituted to run the fund on an ongoing basis — the draft refers to the Committee constituted under clause 8 to administer the Fund — covering maintenance, audit and investment of the pooled corpus, and reimbursement to Banking Units when a depositor later comes forward to reclaim money that had already been transferred to the fund.

• Deposits/credit balances unclaimed or inoperative for 10 years or more are the trigger for transfer.
• Depositors retain the right to claim their funds even after transfer; the scheme sets out a settlement mechanism for such claims.
• Banking Units that pay out a depositor after transferring the amount to the fund are entitled to reimbursement from the fund.
• The fund's investment income is earmarked for depositor education and awareness activities in the IFSC.

Scale of GIFT IFSC banking activity

The scheme responds to genuine growth in the deposit base it will oversee. As of March 2026, customer deposits in banking units in the IFSC stood at $8.98 billion. This is up sharply from the early years of GIFT IFSC's banking operations, when total deposits were far smaller and the number of licensed IFSC Banking Units (IBUs) was still limited to a handful of Indian and foreign lenders operating offshore branches from GIFT City, Gandhinagar.

What happens next

IFSCA has issued a consultation paper on the draft IFSC Depositor Education and Awareness Fund (IDEA Fund) Scheme, 2026 and invited public comments by August 12, 2026. Following the comment window, IFSCA is expected to finalise the text and publish it as a formal notification in the Official Gazette, at which point the scheme's effective date and compliance timelines for Banking Units would be triggered. Until Gazette notification occurs, Banking Units in GIFT IFSC are not yet legally required to transfer unclaimed deposits to the fund.