Bank of Maharashtra Receives RBI Approval for Branch in GIFT City
The Bank of Maharashtra has received the Reserve Bank of India's (RBI) approval to establish its first-ever International Financial Services Centre (IFSC) Banking Unit (IBU) at GIFT City in Gujarat. This strategic move marks a significant milestone in the bank's ongoing efforts to expand its offshore banking operations.
New Delhi: The Bank of Maharashtra has received the Reserve Bank of India‘s (RBI) approval to establish its first-ever International Financial Services Centre (IFSC) Banking Unit (IBU) at GIFT City in Gujarat. This strategic move marks a significant milestone in the bank’s ongoing efforts to expand its offshore banking operations.
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Bank of Maharashtra Expands Its Operations with GIFT City Branch
The new IBU at GIFT City will allow the bank to broaden its international banking services and cater to a more diverse range of customers. Bank of Maharashtra’s Managing Director & CEO, Nidhu Saxena, expressed that this development is a key opportunity in the bank’s global expansion strategy, adding, “The opening of the IBU in GIFT City will be another milestone in the bank’s growth story.”
GIFT City: A Hub for International Banking and Innovation
GIFT City, located in Gandhinagar, Gujarat, is India’s first IFSC and plays a vital role in shaping the country’s financial landscape. It aims to offer world-class banking services domestically while reducing India’s dependence on offshore financial centres. The city is becoming a central hub for fintech innovation, global investments, and job creation, positioning itself as a catalyst for India’s financial future.
The Indian government has been actively encouraging such initiatives by providing multiple incentives through the Union Budget, especially aimed at promoting investment, employment, and offshore funding at GIFT City’s IFSC.
Government Incentives for Offshore Investments in GIFT City
The Finance Ministry has introduced several incentives to attract offshore funds to GIFT City. Among these initiatives is the extension of the existing relocation regime to include Exchange Traded Funds (ETFs) and retail schemes from international locations such as Mauritius and Singapore. This move ensures a tax-neutral relocation process for such funds, strengthening GIFT City’s position as an international financial hub.
In addition, non-resident investors will benefit from the expansion of tax exemptions on income derived from derivative trades and participatory notes through GIFT City-based foreign portfolio investors (FPIs).
Facilitating Global Capital Access for Indian Companies
The government has also made it easier for Indian companies to list on international exchanges within the IFSC. This includes the introduction of the ‘Direct Listing of Equity Shares of Companies Incorporated in India on International Exchanges Scheme,’ providing an essential framework for Indian start-ups and technology companies to access global capital markets.
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These regulatory changes aim to create a business-friendly environment in GIFT City, thus reinforcing India’s competitive edge in the global financial ecosystem.
With the approval of Bank of Maharashtra’s IBU and these government-driven initiatives, GIFT City is poised to emerge as a key player in India’s journey towards becoming a global financial hub.
Strengthening India’s Global Financial Position
The establishment of the Bank of Maharashtra’s IBU in GIFT City is a step forward in enhancing India’s position in the international financial sector. The combined efforts of the government and financial institutions will support India’s goal of creating an agile and world-class financial system, reinforcing its standing in the global market.
