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 Dipesh Shah, Head Development, International Financial Services Centres Authority.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU