IFSCA issues consultation paper on proposed Aircraft Leasing Regulations
Part of: GS Prelims and GS-III – Infrastructure
- International Financial Services Centres Authority (IFSCA) has issued consultation paper on proposed Aircraft Leasing Regulations.
- India is poised to become the 3rd largest aviation market in the world by 2022.
- In January 2019, India’s Ministry of Civil Aviation published a report, ‘Project Rupee Raftar’, that provided roadmap to developing an aircraft financing and leasing industry in India.
- The report identified International Financial Services Centre (GIFT city) for developing aircraft leasing and financing eco-system in the country.
- In October, 2020, on the recommendation of IFSCA, the Central Government had notified Aircraft lease which shall include operating and financial lease of aircraft or helicopter and their engines as a financial product under International Financial Services Centres Authority Act, 2019.
- Considering, Aircraft leasing is a relatively new industry in India and Aircraft Leasing related regulations are different across various financial centres, IFSCA has prepared draft regulations for Aircraft Leasing and in order to get inputs from stakeholders as well as public comments.
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- IFSCA has an objective to develop a world class FinTech hub at the IFSC in GIFT City, Gandhinagar (Gujarat).
- Thus, it endeavours to encourage the promotion of financial technologies (‘FinTech’) initiatives in financial products and services across the fields of banking, insurance, securities and fund management.