Citibank becomes first US bank to set up unit in IFSC at GIFT City

AHMEDABAD : Citibank, which is headquartered in the USA and has a strong international presence, on Monday received a license from the IFSC Authority to set up its banking unit at India’s first International Financial Services Centre at GIFT City, Gujarat.

With this, Citibank will become the first US-based bank to set up a branch in GIFT-IFSC. Citibank will be servicing both Indian as well as its global customer base from this IFSC branch.

India’s maiden IFSC at GIFT City has witnessed significant increase in banking sector activity, with the total banking transactions now crossing the $100 billion mark. These transactions include external commercial borrowings, foreign currency term loans and trade finance among others.

Ever since IFSCA assumed the role of the unified financial regulator for the IFSC in India, the regulatory regime at GIFT City is being benchmarked with global standards, resulting in major traction from the financial services industry.

Recently, Deutsche Bank, which is one of the major global banks with presence in over 70 countries, became the first German bank to set up IBU (IFSC Banking Unit). Globally benchmarked and progressive regulations issued by IFSCA have been instrumental in driving both international as well as Indian banks to set up branches at IFSC.

Leading Indian and foreign banks such as HSBC, Standard Chartered, Barclays Bank, State Bank of India, Bank of Baroda, ICICI Bank, Axis Bank, Kotak Mahindra Bank, HDFC Bank, etc are already operating their banking business from GIFT IFSC.

“Global Banks are finding IFSC a great strategic opportunity to serve International and Global clients, at a very competitive cost. IFSC is fast emerging as a preferred gateway for International Financial Services and enabling many new business opportunities for Global investors,” said Mr. Dipesh Shah, Head Development, International Financial Services Centres Authority.

Source : Business Standard