Gandhinagar: U.S.-headquartered Citibank N.A (Citi) has recently received in- principle approval from Reserve Bank of India (RBI) and GIFT SEZ Authority to set up an IFSC Banking Unit (IBU) at GIFT City. The proposed commencement of the IBU by Citi, marks a significant development in India’s IFSC business and proves GIFT City’s mettle as a globally competitive international financial services centre at par with other established global financial centres across the world. This also marks a major milestone for Citi in India, which has been present in the country for more than a century.

Welcoming Citibank at GIFT IFSC, Mr. Tapan Ray, MD & Group CEO, GIFT City said, “The presence of Citibank further strengthens the foreign bank ecosystem at GIFT IFSC. Government of India has envisaged GIFT IFSC as a hub to bring offshore financial transactions onshore and the presence of Citibank is a testimonial to that vision.”

Commenting on the Bank’s proposed presence at GIFT IFSC, Mr. Ashu Khullar, CEO Citi India said “The IFSC Banking Unit will help us enhance our product offering to our local corporate and MNC clients, by allowing us to seamlessly execute cross-border financing structures specifically for their trade and ECB requirements. This will truly benefit our clients and their growth plans globally and in India. GIFT IFSC will support India’s growth and integration into the world’s trade corridors.”

The banking business at GIFT IFSC has seen a quantum jump in last few years. 14 banks have set up their IBUs in GIFT IFSC. The cumulative business in banking vertical have crossed $28bn. GIFT IFSC Banking Units have played a pivotal role in the development of IFSC in India by providing dollar financing to Indian corporates. As per available data, GIFT IFSC have contributed around 11% of total financial services exports of India. Apart from banking, insurance and international exchanges in GIFT IFSC have also seen an upward trajectory in their business.