The GIFT International Financial Services Centre (IFSC) has emerged as a beacon of growth and opportunity, with the number of registered entities surpassing the significant milestone of 600.
This remarkable achievement underscores the burgeoning prominence of GIFT IFSC as a preferred destination for global financial activities and transactions. Over the past year, GIFT IFSC has witnessed a remarkable surge in financial activities, with total banking assets soaring to an impressive $60 billion. Concurrently, cumulative banking transactions surged to a staggering $795 billion by March 2024, reflecting the centre’s pivotal role in facilitating robust financial operations and transactions. According to sources familiar with the matter, the recent surge in registrations highlights the growing allure of GIFT IFSC among domestic and international institutions. In the last six months alone, more than 140 entities have sought registration with the IFSC Authority, underscoring the centre’s growing appeal as a conducive environment for conducting international business operations.
The regulatory framework established under the auspices of the International Financial Services Centre Authority (IFSCA) has been pivotal in fostering this growth trajectory. With globally benchmarked regulations and a competitive tax regime, GIFT IFSC offers a conducive ecosystem for Indian and global institutions to structure their international business operations efficiently. As GIFT IFSC evolves into a hub for job-generating businesses, regulatory enablers are being developed to support diverse economic activities. Private banks are ramping up their IT investments to bolster digital transaction management, with a keen focus on enhancing efficiency and security standards. Moreover, regulatory oversight from the Reserve Bank of India (RBI) ensures continual upgrades in technology capabilities to adeptly handle increasing transaction volumes and mitigate fraud risks. In the upcoming month of May 2024, banks within GIFT IFSC will observe closures on 14 days, including Maharashtra Day and International Workers’ Day, aligning with the Reserve Bank of India’s holiday calendar. These closures, varying by state and observance, aim to ensure operational alignment and regulatory compliance within the financial ecosystem. The continued growth and success of GIFT IFSC underscore its pivotal role in shaping India’s financial landscape and fostering economic dynamism on a global scale.
