Citibank gets nod to set up IFSC Banking Unit at GIFT City
by Our Bureau.Citibank has received in-principle approval from Reserve Bank of India and GIFT SEZ Authority to set up an IFSC Banking Unit (IBU) at GIFT City, said an official statement.
Citibank becomes the 15th bank to set up its IBU at India’s first IFSC after the first one was set up by YES Bank in October 2015.
This marks a major milestone for Citibank in India after having its presence in the country for more than a century.
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. The cumulative business in banking vertical has crossed $28 billion.
Commenting on development, Tapan Ray, MD and Group CEO, GIFT City, said: “The presence of Citibank further strengthens the foreign bank ecosystem at GIFT IFSC. The 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.”
GIFT IFSC Banking Units have played a pivotal role in the development of IFSC in India by providing dollar financing to Indian corporate.
As per available data, GIFT IFSC have contributed around 11 per cent of total financial services exports of India.