RBI has formulated a scheme for the setting up of IFSC Banking Units (IBUs) by Indian banks and foreign banks already having presence in India. The IFSC banking units will be able to provide foreign currency financing requirements of the Indian corporates as well for overseas entities. The Branch will operate as an offshore branch.
IFSC Banking Units are set to provide a wide range of corporate banking services which include:
-Foreign currency transactions
-Deployment of funds to India residents
-Deployment of funds to non-residents
-Factoring and forfeiting of trade receivables
-Raising funds from non-residents
-dealing in derivative and structured products
International banks are spotting a strategic opportunity to serve domestic and international clients from GIFT IFSC. The Bank of America Corporation, a US-based multinational investment bank and financial services company set it s foot in IFSC at an early stage. Other foreign banks at GIFT IFSC include Standard Chartered Bank, Hongkong & Shanghai Bank Corporation Ltd, Citibank NA, Barclays Bank, Deutsche Bank, and JPMorgan Chase Bank National Association.
Among the India Banks having presence at GIFT City are Bank of Baroda, State Bank of India, Indian Bank and Punjab National Bank. The India private sector banks include Axis Bank, Federal Bank, HDFC Bank, ICICI Bank, IDBI Bank, Indusind Bank, Kotak Mahindra Bank, RBL Bank and Yes Bank.
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