Gujarat International Finance Tec-City (GIFT City) is India’s premier International Financial Services Centre (IFSC), offering world-class financial services infrastructure. Opening a bank account in GIFT City provides individuals and businesses with access to foreign currency transactions, international investments, and an enhanced regulatory framework aligned with global financial hubs.

This guide outlines the eligibility criteria, types of accounts available, documentation requirements, regulatory framework, tax implications, and key considerations for opening a bank account in GIFT City.

Understanding GIFT City and Its Offerings

GIFT City, located in Gujarat, India, is a strategic financial hub designed to facilitate international banking and financial services. The banks operating within GIFT City are known as IFSC Banking Units (IBUs) and are authorized to conduct foreign currency transactions while benefiting from a favorable tax regime and business-friendly policies.

Key benefits of banking in GIFT City:

• Access to multi-currency banking services
• No restriction on repatriation of funds
• Lower taxation on financial transactions
• Seamless integration with global financial markets

Eligibility Criteria for Opening an Account

As per the latest guidelines (2024), the following individuals and entities are eligible to open an account in GIFT City:

1. Non-Resident Indians (NRIs):

   • NRIs are permitted to open foreign currency accounts with International Banking Units (IBUs) in GIFT City.
   • While a Permanent Account Number (PAN) is commonly required, NRIs without a PAN can submit Form 60 as a declaration, provided they have no tax liabilities in India.

2. Resident Indians (RIs):

   • Resident individuals are allowed to open foreign currency accounts in GIFT City under the Liberalized Remittance Scheme (LRS).
   • Under LRS, residents can remit up to USD 250,000 per financial year for permissible current or capital account transactions, including investments and overseas property purchases.

3. Foreign Nationals:

   • Foreign nationals are eligible to open accounts in GIFT City, subject to compliance with local regulations pertaining to offshore banking.

4. Businesses and Corporates:

Indian and foreign businesses involved in international trade, investment, and financial activities can open bank accounts in GIFT City for efficient foreign currency transactions. Foreign companies, including corporates and partnership firms, must comply with IFSCA regulations to establish accounts.

Additionally, as per the IFSCA directions issued on December 13, 2024, IBUs can now open Foreign Currency Accounts (FCAs) for Indian resident individuals for LRS-related remittances from both onshore India and other jurisdictions. These FCAs may also be used beyond LRS purposes, subject to compliance with FEMA (Foreign Currency Accounts) Regulations, 2015.

Key points to note:

• Funds in FCAs must be utilized for the declared purpose within 180 days of remittance.
• Utilized funds should be repatriated back to the resident’s domestic account in India within the stipulated timeframe.
• FCAs cannot be used for settling domestic transactions between Indian residents

Types of Accounts

1. Current Accounts:

   • Purpose: Designed for businesses and individuals with frequent transactions.
   • Features:
     • Generally non-interest bearing.
     • Available in multiple foreign currencies, including USD, GBP, EUR, CAD, SGD, and AED.
     • Gift City

2. Savings Accounts:

   • Purpose: Ideal for individuals seeking to earn interest on foreign currency holdings.
   • Features:
     • Offered in major international currencies such as USD, GBP, EUR, CAD, SGD, and AED.
     • Accounts come with nomination facilities and international debit cards.

3. Call Accounts:

   • Purpose: Suitable for those needing flexible access to funds
   • Features:
     • Zero balance requirement.
     • Funds are available on call with the flexibility of anytime withdrawal.
     • Available in multiple currencies, including USD, GBP, and EUR.

4. Fixed Deposit Accounts:

   • Purpose: For individuals and businesses aiming to earn higher interest rates on deposits.
   • Features:
     • Offered in major currencies with tenures ranging from 1 month to 5 years.
     • Competitive interest rates.
     • Automatic renewal options.

These account types are offered by various banks operating within GIFT City, such as HDFC Bank, ICICI Bank, and IndusIand Bank, each providing specific features and benefits to cater to diverse customer needs.

Documentation Requirements

For Resident Indians:

Identity and Address Proof (any one of the following):

• Valid Passport with photograph and signature
• Driving License issued by the regional transport authority
• Voter ID card
• Aadhar letter issued by the Unique Identification Authority of India (UIDAI)

Note: Original proof of identity and address is required during account opening.

For Non-Resident Indians (NRIs):

Identity Proof:

• Photocopy of valid passport
• Copy of Permanent Account Number (PAN) or Form 60 (in absence of PAN)

Proof of NRI Status:

• Copy of valid visa, work permit, or Overseas Resident Card

Address Proof:

• Document confirming an overseas or Indian address

All documents must be self-attested. For non-face-to-face account openings, documents need certification by authorized entities.

Account Opening Process

1. Initiate Contact: Existing customers can reach out to their Relationship Manager for assistance in opening an account. New customers should contact the bank directly through official channels or visit the bank’s branch within GIFT City to gather information and begin the process. Banks usually provide a dedicated helpline or email support for inquiries related to account opening.
2. Obtain and Complete Application Form: The account opening form can be downloaded from the bank’s official website or collected from the bank’s branch. Applicants must fill out the form with accurate personal and financial details, ensuring that all mandatory fields are completed correctly to avoid any processing delays.
   
   
3. Prepare Required Documentation: Documents need to be prepared as mentioned under the previous heading.
   
   
4. Submit Application and Documentation: Once the application form is completed and all necessary documents are prepared, they must be submitted to the bank. This can typically be done in person at the bank’s branch in GIFT City or through digital submission, depending on the bank’s policies. It is important to review all details before submission to ensure accuracy and completeness, as any missing or incorrect information may lead to delays in processing.
   
   
5. Verification Process: After submission, the bank will review and verify the provided documents. During this process, the bank may reach out for additional information or clarification if required. The verification process ensures compliance with regulatory requirements and may involve background checks or additional due diligence, especially for non-resident account holders.
   
   
6. Account Activation: Once all documents are verified successfully, the bank will activate the account and share the account details with the applicant via registered contact details, which may include email or physical mail. Applicants will then receive access to their banking facilities, including online banking, fund transfers, and other related services as per the bank’s policies.
   
   

Important Considerations:

• Declaration of Existing Credit Facilities: As per regulatory guidelines, applicants must declare any existing credit facilities with other banks during the account opening process.
• Processing Time: The account opening process typically takes 3-5 business days, provided all documentation is in order.

Regulatory Framework and Compliance

Banking operations in GIFT City are regulated by the International Financial Services Centers Authority (IFSCA) and the Reserve Bank of India (RBI).

The key regulatory aspects include:

• Liberalized Remittance Scheme (LRS): Residents can remit up to USD 250,000 per financial year through GIFT City accounts.
• Foreign Exchange Management Act (FEMA) Regulations: Ensures compliance with forex transaction rules.
• Repatriation of Funds: There are no restrictions on the repatriation of foreign currency deposits.
• Monitoring Requirements: IBUs must ensure timely remittances into FCAs and maintain strict documentation for funds received from onshore India via an Authorized Person (AP).

Key Considerations before Opening an Account

Before opening an account in GIFT City, consider the following:

• Currency Options: Ensure the bank offers accounts in the required foreign currencies.
• Transaction Facilities: Check for wire transfer options, debit cards, and online banking features.
• Minimum Balance Requirements: Some banks offer zero balance accounts, while others may have balance requirements.
• Deposit Insurance: Funds in IBUs are not covered under India’s deposit insurance scheme.
• Banking Restrictions: Some banks may not provide cheque books or UPI services for GIFT City accounts.

List of Major Banks Operating in GIFT City

Several leading Indian and international banks have set up operations in GIFT City, including:

• State Bank of India (SBI) IBU
• ICICI Bank IBU
• HDFC Bank IBU
• Axis Bank IBU
• Kotak Mahindra Bank IBU
• Standard Chartered Bank IBU

Opening a bank account in GIFT City provides individuals and companies with unique opportunities to engage with global financial markets while enjoying certain tax benefits. However, it is essential to be aware of the regulatory requirements and limitations associated with banking in this IFSC. By understanding these aspects thoroughly, potential customers can make informed decisions about their banking needs in GIFT City. With RBI’s recent relaxation on Resident Indian accounts, GIFT City has become an attractive banking destination for global transactions.