Anup Vatyani — AMFI-registered Mutual Fund Distributor (ARN 106715) | Educational content only | No personalised advice

    Banks in GIFT City and Setting Up a Business in GIFT IFSC

    Anup Vatyani

    By Anup Vatyani, AMFI-registered Mutual Fund Distributor (ARN 106715)
    Last reviewed October 2026

    The short answer. For individuals, the useful part of GIFT City banking is the IFSC Banking Unit (IBU): a branch of an Indian or foreign bank that offers US Dollar and other foreign currency accounts. For businesses, GIFT IFSC offers a special regime with its own regulator, tax incentives and a single application window. This page covers both at a high level.

    Banks in GIFT City

    TypeExamplesUseful for individuals
    Indian banks' IFSC Banking UnitsSBI, other large public and private sector banksUSD accounts and fixed deposits
    Foreign banks' IFSC Banking UnitsJPMorgan, Standard Chartered, Citibank, HSBC, Deutsche Bank, Barclays, MUFGMainly corporate and institutional banking

    How to open an account, documents and costs: see How to open a GIFT City bank account. Deposits compared: GIFT City FDs vs NRE and FCNR.

    Setting up a business in GIFT IFSC

    1. 1

      Choose the activity

      Fund management, banking, broking, leasing, fintech

    2. 2

      Incorporate

      Indian company or branch

    3. 3

      Apply to IFSCA

      Through the Single Window IT System

    4. 4

      SEZ approval

      To operate as an IFSC unit

    5. 5

      Start operations

      Office in the GIFT SEZ

    A typical route; the exact licence depends on the activity.

    Common IFSC activities

    • Fund management: registering as a Fund Management Entity. See IFSCA and its fund regulations.
    • Fintech: IFSCA runs a regulatory sandbox and fintech incentive scheme for eligible start-ups.
    • Aircraft and ship leasing: a dedicated IFSCA framework for leasing companies.
    • Global in-house centres and back offices serving international operations.

    Tax and incentives for IFSC units

    IFSC units can claim a 100% income tax deduction for any 10 consecutive years out of 15, pay a reduced MAT of 9% where MAT applies, and benefit from GST and stamp duty relief. Details are in Regulation and Taxation. Costs such as office rent vary; get current quotes from GIFT City developers and service providers.

    Common questions

    Does SBI have a GIFT City branch?

    Yes. State Bank of India runs an IFSC Banking Unit in GIFT City, as do several other large Indian banks.

    Which foreign banks are in GIFT City?

    Foreign banks with IFSC Banking Units in GIFT City include JPMorgan, Standard Chartered, Citibank, HSBC, Deutsche Bank, Barclays, Bank of America and MUFG, mostly serving corporate and institutional clients.

    Can I open foreign currency accounts in GIFT City?

    Yes. GIFT City foreign currency accounts are offered by IFSC Banking Units in US Dollars and other major currencies, subject to each bank's eligibility and KYC.

    Is GIFT City offshore banking?

    In effect, yes: GIFT City banking is treated as offshore for foreign exchange purposes, so IFSC Banking Units deal in foreign currency, but they are regulated in India by IFSCA.

    How do company registration and the IFSC license work in GIFT City?

    Company registration in GIFT City starts with incorporating an Indian company or branch. The business then applies for an IFSC licence or registration from IFSCA for its activity, and for SEZ approval, through IFSCA's Single Window IT System.

    What is involved in a GIFT City IFSC setup?

    A GIFT City IFSC setup typically needs an incorporated entity, the right IFSCA licence, SEZ approval, an office in the GIFT SEZ, key personnel and a compliance framework.

    How do I set up a fintech in GIFT City?

    For a GIFT City fintech setup, IFSCA offers a regulatory sandbox and a fintech incentive scheme with grants for eligible start-ups. Apply to IFSCA under its fintech framework.

    What is the operating cost in GIFT City?

    GIFT City operating cost depends on office space, staff and compliance. Rents are generally lower than in Mumbai's financial districts, but get current quotes from GIFT City developers and service providers.

    Are there subsidies in GIFT City?

    GIFT City subsidies and incentives include the tax benefits for IFSC units, IFSCA's fintech incentive scheme, and Gujarat state policies that can offer support to eligible businesses. Check the current schemes before planning on them.

    Which banks are in GIFT City?

    GIFT City has IFSC Banking Units (IBUs) of most large Indian banks, including SBI, and of many foreign banks, such as JPMorgan, Standard Chartered, Citibank, HSBC, Deutsche Bank, Barclays and MUFG. The IFSCA Directory has the current list.

    Can I open a bank account in GIFT City?

    Yes. IFSC Banking Units offer foreign currency accounts and deposits to NRIs, foreign citizens and, within LRS, resident Indians. Each bank sets its own documents and minimum balance.

    How do I set up a company in GIFT City?

    Typically: incorporate an Indian company or branch, apply to IFSCA for the licence or registration your activity needs, and get approval to operate in the GIFT SEZ. IFSCA's Single Window IT System brings the IFSCA and SEZ applications together.

    What is the difference between the SEZ and DTA in GIFT City?

    GIFT City has a multi-service Special Economic Zone, which contains the IFSC, and a Domestic Tariff Area (DTA) for regular Indian businesses, offices and housing. IFSC benefits apply only to units in the SEZ.

    Is GIFT City used for aircraft and ship leasing?

    Yes. IFSCA has a framework for aircraft and ship leasing, and many leasing companies have set up in GIFT IFSC to lease aircraft and ships to Indian and foreign operators.

    Official sources

    Rules change. Check the current position with the authority that sets it.

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    This page is educational and is not investment, tax or legal advice. Figures and rules are as understood at the date shown and can change; check the official sources and the scheme's offer documents. Investments are subject to market risks; read all scheme-related documents carefully.