ASSOCHAM urges GIFT City reforms to boost Indian Rupee internationalisation
Synopsis
ASSOCHAM has handed the government and RBI a concrete two-part blueprint — a Global Family Office Hub and a Corporate Treasury Centre — to turn GIFT City into a genuine rival to Singapore and Dubai. The missing link, the chamber says, is a single RBI circular on Vostro Account fungibility that could unlock Rupee trade settlement at scale.
Key Takeaways
ASSOCHAM submitted proposals to the government and RBI on 16 June calling for two new frameworks within GIFT City .
A Global Family Office Hub would target entities managing several trillion dollars in assets globally, aiming to channel capital inflows into India.
A Corporate Treasury Centre framework would compete with Singapore , Dubai , London , and Hong Kong for multinational treasury operations.
A single regulatory fix — an RBI circular on INR Vostro Account cross-country fungibility — could unlock wider Rupee trade settlement.
ASSOCHAM President Nirmal K.
Minda linked the proposals to PM Modi's vision of maximising India's international trade in Indian Rupees.
ASSOCHAM on Tuesday, 16 June formally urged the government and the Reserve Bank of India (RBI) to establish a Global Family Office Hub and a globally competitive Corporate Treasury Centre (CTC) framework within GIFT City, arguing that both measures are essential to structurally strengthen the Indian Rupee and expand its role in international trade settlement.
The Case for a Global Family Office Hub
In a submission to the government and the central bank, the industry chamber said a dedicated policy and regulatory framework is needed to attract global family offices — entities that collectively manage several trillion dollars in assets — to set up investment, treasury, and wealth management structures inside GIFT City. According to ASSOCHAM, such a hub would generate sustained capital inflows, deepen India's financial markets, and contribute directly to the structural strengthening of the Rupee and its foreign exchange reserves.
Corporate Treasury Centre: Competing with Singapore and Dubai
The industry body also called for a globally competitive CTC framework to draw the treasury, cash pooling, foreign exchange management, and trade finance operations of multinational corporations into GIFT City. These functions are currently concentrated in Singapore, Dubai, London, and Hong Kong. A competitive framework benchmarked against these leading international financial centres, ASSOCHAM argued, could redirect a meaningful share of those operations to India.
Nirmal K. Minda, President of ASSOCHAM, said: 'We urge the Government to give GIFT City the competitive framework it deserves, benchmarked against the world's best international financial centres.'
The Vostro Account Gap Blocking Rupee Trade
ASSOCHAM identified a specific regulatory gap that it says is preventing wider Rupee trade settlement: the absence of an explicit provision allowing cross-country fungibility of INR Vostro Account balances. This gap, the chamber said, pushes authorised dealer banks to default to dollar settlement even when Rupee settlement is theoretically possible.
The body has called on the RBI to issue a circular explicitly permitting INR balances accumulated in Special Rupee Vostro Accounts to be freely used to settle payment obligations arising from Indian export or import transactions, subject to applicable KYC, AML, and documentation requirements.
Geopolitical Window and PM Modi's Rupee Vision
Minda added that the current moment offers a rare opportunity to realise Prime Minister Narendra Modi's vision of conducting India's international trade in Indian Rupees to the greatest possible extent. ASSOCHAM noted that India's trading partners across BRICS, West Asia, ASEAN, and Africa are actively seeking alternatives to the dollar, and argued that the Indian Rupee is 'the most credible alternative available.' The chamber described present geopolitical conditions as 'uniquely favourable' for accelerating Rupee internationalisation.
The submission arrives as GIFT City continues to expand its regulatory perimeter, and as India pushes to raise its profile as a global financial hub. Whether the RBI and the government act on the specific Vostro Account circular request will be closely watched by international treasury and wealth management circles.
Point of View
However, faces a structural challenge that the chamber glosses over — Singapore and Dubai's advantage is not just regulatory, it is reputational and infrastructural, built over decades. Attracting global family offices requires legal certainty, dispute resolution credibility, and talent depth, none of which a single policy circular can deliver. The geopolitical argument about BRICS and West Asia seeking dollar alternatives is real, but converting that sentiment into actual Rupee-denominated trade flows has proved elusive since the Vostro framework was first introduced in 2022. The gap between policy intent and operational uptake remains the defining challenge.
NationPress
1 Aug 2026
Frequently Asked Questions
What has ASSOCHAM proposed for GIFT City?
ASSOCHAM has proposed two frameworks for GIFT City: a Global Family Office Hub to attract wealth management and investment structures from family offices managing trillions of dollars globally, and a Corporate Treasury Centre to draw multinational treasury and cash management operations currently based in Singapore, Dubai, London, and Hong Kong.
What is the Vostro Account issue ASSOCHAM has flagged?
ASSOCHAM has identified the absence of an explicit RBI provision allowing cross-country fungibility of INR Vostro Account balances as the key regulatory gap blocking wider Rupee trade settlement. It has asked the RBI to issue a circular permitting INR balances in Special Rupee Vostro Accounts to settle Indian export and import payment obligations subject to KYC and AML requirements.
Why does ASSOCHAM say the timing is favourable for Rupee internationalisation?
The chamber argues that India's trading partners across BRICS, West Asia, ASEAN, and Africa are actively seeking alternatives to the US dollar, making the Indian Rupee the most credible substitute available. It describes current geopolitical conditions as uniquely favourable for accelerating Rupee internationalisation.
Who made the ASSOCHAM submission and to whom?
The submission was made by ASSOCHAM, led by its President Nirmal K. Minda, and was addressed to the Indian government and the Reserve Bank of India on 16 June.
How does a Corporate Treasury Centre in GIFT City help the Rupee?
A Corporate Treasury Centre would centralise the foreign exchange management, cash pooling, and trade finance operations of multinationals within GIFT City, generating sustained Rupee-denominated activity and reducing reliance on dollar settlement for India-linked transactions.
