Banking

Globally, the banking sector plays an important and multifaceted role in the economic development of an international financial centre such as IFSC.

Any Indian or foreign bank (irrespective of having presence in India) can set up an IFSC banking unit (IBU) and undertake various activities such as offering foreign currency and Indian rupee external commercial borrowings, non-deliverable forwards, trade finance solutions, underwriting, distribution and payment services. Foreign banks having an IBU in an IFSC can also register with SEBI as Category-I Foreign Portfolio Investors and undertake investment activities in onshore public market securities. Additionally, a robust banking system provides an impetus to all other sectors leading to development of the financial centre.

IBUs are also eligible for various tax benefits and incentives under the IFSC regime. The enabling regulatory framework, coupled with a favourable tax regime, has encouraged global banking players to set up IBUs. Banking in the IFSC is a promising and growing opportunity for banks to expand their global reach and offer world-class financial solutions to clients.