Bank of Maharashtra Secures RBI Approval for GIFT City Branch

New Delhi, Feb 16 (NationPress) The government-owned Bank of Maharashtra declared on Sunday that it has received the RBI's approval to establish an International Financial Services Centre (IFSC) Banking Unit at GIFT City in Gujarat. This new branch will mark the Bank of Maharashtra's inaugural unit dedicated to offshore banking operations from India.

The Managing Director & CEO of Bank of Maharashtra, Nidhu Saxena, stated, "This represents a significant opportunity for our bank as we aim to broaden our operations across various regions. The establishment of the IBU in GIFT City will be another important milestone in our growth trajectory."

This new branch is set to bolster the international banking business and will also allow the bank to provide specialized banking services to its clientele, he noted.

In line with the government's vision to transform India into an international financial hub, GIFT City, located in Gandhinagar, Gujarat, is India's first IFSC, designed to revolutionize the nation's financial landscape by offering world-class banking services locally and diminishing dependence on offshore financial centers, as stated by Bank of Maharashtra.

The center has also emerged as a hub for fintech innovation and global investments, creating job opportunities and drawing institutions across banking, education, and technology sectors, the statement added.

Finance Minister Nirmala Sitharaman announced multiple incentives in the Union Budget, including a range of measures aimed at encouraging investment, job creation, and offshore funding at GIFT's International Financial Services Centre.

To facilitate the relocation of offshore funds to the IFSC, the government has proposed extending the existing relocation framework to Exchange Traded Funds (ETFs) that track popular market indices such as the Sensex and Nifty, as well as retail schemes willing to shift from offshore locations like Mauritius and Singapore to GIFT City.

The shift of an original fund to a resultant fund will also be regarded as a tax-neutral transaction. Non-residents obtaining life insurance from IFSC-based insurance offices will also gain from modifications to the existing Clause 10D of Section 10, effective from 1 April 2025.

Investors who are non-residents will benefit from provisions that expand the scope of tax advantages. In addition to the current tax exemption on any income earned by NRIs via derivative trades or participatory notes, benefits will also extend to those investing through GIFT city-based foreign portfolio investors.

Earlier in August, the Finance Ministry relaxed criteria for Indian companies looking to list on international exchanges within International Financial Service Centres (IFSCs) to align with global standards. These amendments will ease access to global capital for Indian start-ups and companies in emerging and technology sectors.

The ‘Direct Listing of Equity Shares of Companies Incorporated in India on International Exchanges Scheme’ under the Foreign Exchange Management (Non-Debt Instruments), 2019 and Companies (Listing of Equity Shares in Permissible Jurisdictions) Rules, 2024 collectively provide a comprehensive regulatory framework that enables public Indian companies to issue and list their shares in authorized international stock exchanges at GIFT-IFSC.

These initiatives align with the Government's objective to create an agile and world-class regulatory and business environment in the IFSCs, thereby fortifying India's position within the global financial system.