What Is GIFT City, and Why Does It Matter for NRIs?
The GIFT City (Gujarat International Finance Tec-City) is India’s first International Financial Services Centre, built in Gandhinagar to function like global financial hubs such as Singapore or Dubai. It sits outside the usual domestic banking framework, which means banks operating there can offer foreign currency accounts, deposits, and services without the restrictions that apply to regular Indian branches.
For NRIs, this solves a real problem. Money sitting in, say, a US or UK account often doesn’t earn much, and converting it back to India means dealing with currency risk and procedural delays. GIFT City lets NRIs bank in dollars, pounds, or euros while staying within India’s regulatory umbrella, supervised by the International Financial Services Centres Authority (IFSCA).
Axis Bank’s Presence at GIFT City
Axis Bank opened its IFSC Banking Unit (IBU) at GIFT City back in November 2017, making it one of the earliest movers among private banks. What started as a corporate-focused treasury and asset desk has since grown into a full-service offshore banking operation.
In late 2024, the bank expanded its GIFT City premises from roughly 2,700 sq. ft. to nearly 8,000 sq. ft., reflecting how much demand had built up. By October 2024, Axis Bank had crossed USD 1 billion in customer deposits through this unit, making it the first private sector bank to hit that mark at GIFT City. That’s a meaningful signal,it shows NRIs are trusting this channel with real money, not just testing it out.
Services Axis Bank Offers at GIFT City
The IBU caters to both retail NRI customers and corporates. Here’s how the offerings break down:
For NRI Retail Customers
- Foreign currency Fixed Deposits (FCY FDs) in USD, GBP, CAD, EUR, AUD, and JPY
- A digital FD booking option for USD deposits via Axis Bank’s “Open by Axis Bank” mobile app, no paperwork, no branch visit needed
- Manual/physical FD booking for other currencies through the GIFT City branch or a dedicated relationship manager
- Dedicated relationship manager support for personalised guidance
For Corporate Clients
- Fund-based lending: External Commercial Borrowings (ECB), Foreign Currency Term Loans (FCTL), Revolving Credit Facilities (RCF)
- Non-fund-based facilities: Letters of Credit, Bank Guarantees, Standby LCs
- Trade and transaction banking: buyer’s credit, receivables financing, current and savings accounts, term deposits
- Treasury solutions: forwards, derivatives, non-deliverable forwards (NDFs)
- Capital market services
A practical example: an NRI based in Dubai who keeps a few thousand dollars idle in a UAE savings account earning close to nothing can instead open a USD FD with Axis Bank’s GIFT City IBU through the mobile app, lock in a competitive rate, and track it digitally, all without converting currency or visiting India.
Why NRIs Are Choosing GIFT City Deposits
A few things make this option genuinely useful, not just another product on the shelf:
- No currency conversion needed, deposits stay in the original foreign currency, so there’s no forex loss
- Digital-first process, at least for USD FDs, the entire journey happens on the app
- Competitive interest rates compared to many NRE foreign currency deposit options elsewhere
- Light penalty on premature withdrawal i.e. only 15 bps, compared to steeper penalties on many domestic products
- Eligibility is simple, any NRI (not a minor) or foreign national with an existing KYC-compliant NRE account at Axis Bank can apply
One thing worth flagging clearly: GIFT City deposits are not covered under the RBI’s Deposit Insurance scheme, unlike regular domestic FDs. That’s a trade-off NRIs should weigh before committing large sums.
How This Fits the Broader NRI Investment Landscape
Axis Bank’s GIFT City offering isn’t an isolated product, it’s part of a wider shift. Other major banks, including SBI and ICICI, have built similar IFSC units at GIFT City, and IFSCA continues to widen the scope of what’s permitted there, from insurance to fund management. For NRIs comparing NRI investment options in India, GIFT City increasingly sits alongside NRE/NRO accounts and mutual fund routes as a legitimate, regulated way to park foreign currency without sacrificing returns.
Conclusion
Axis Bank’s GIFT City IBU gives NRIs a practical bridge between foreign currency holdings and India’s financial system, without forcing a conversion or a compromise on convenience. With digital FD booking, multiple currency options, and a fast-growing deposit base, it’s become one of the more credible entry points into GIFT City for everyday NRI investors, not just large corporates.
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