Last year’s Union budget announcements for setting up Data Embassies in GIFT City could soon become a reality with International Financial Services Centres Authority (IFSCA) readying a framework for providing data continuity solution. The other proposal for setting up a single window clearance system for the project is within a month away from launch, K Rajaraman, chairman of International Financial Services Centres Authority (IFSCA), told businessline.

“We have drafted a framework (for data embassies) and sent it to the government. It is under examination,” Rajaram told businessline. “It has to be provided with a legal framework,” he added. The establishment of data embassies in GIFT IFSC will primarily be facilitated in the form of bilateral agreements between India and the interested countries, stated the Union Government on Thursday as part of its interim budget announcements made in the Parliament .

 “An internal group, constituted to firm up the Concept Note on establishing data embassies, has submitted its report. The report along with the draft MoU has been shared with the Ministry of External Affairs for examination and consultation with interested countries,” it added.

With regard to setting up the promised single-window IT system for registration and approval from IFSCA, SEZ authorities, GSTN, RBI, SEBI and IRDAI, chairman Rajaraman said, “It is almost ready. It is good to go in the next 15-30 days.”

As part of the interim budget, the Union Government stated “Rationalisation and simplification of forms across different verticals of IFSCA and DCSEZ is being undertaken. Approval requirements from other authorities are also being integrated. IFSCA has formed a Working Group with other financial regulators to implement the principle of Regulatory Equivalence” i.e. Trust-based regulation for recognising the approvals of one financial sector regulator by another regulator.”