Top News

Government -owned Bank of Maharashtra on Sunday announced that it has received approval from the RBI to set up an International Financial Services Center (IFSC) banking unit in Gift City, Gujarat. The branch will be the first unit of Bank of Maharashtra for offering banking operations from India. Nidhu Saxena, Managing Director and CEO of Bank of Maharashtra said, “This is an important opportunity for our bank as we continue to expand our operations in geographical areas. The inauguration of IBU in Gift City will be another milestone in the bank's development story. ”

He said that the new branch will help expand the international banking business and will also enable the bank to provide special banking services to its customers. According to the government's approach to make India an international financial center, GIFT City, located in Gandhinagar, Gujarat, is the first IFSC of India, which aims to provide world class banking services locally and reduce the dependence on offshore financial centers at the country The financial ecosystem is to bring revolution, Bank of Maharashtra said in a statement.

The statement said that the center has also become the center of Fintech innovation and global investment, creating jobs and attracting institutions in banking, education and technology centers.

Finance Minister Nirmala Sitharaman announced several incentives in the Union Budget, including several incentives to promote investment, employment and offshore financing at GIFT's International Financial Services Center.

To increase the offshore fund transfer in IFSC, the government has proposed to extend the existing transfer system to the exchange traded funds (ETF), which tracks popular market indices and retail plans like Sensex and Nifty, which Moricus and Singapore For example, GIFT is keen to transfer from offshore places to Gift City.

The transfer of the original fund to the resulting fund will also be considered a tax-focus transaction. Non-residents receiving life insurance from IFSC-based insurance offices will also benefit from amending the existing section 10D of section 10, which is going to be effective from 1 April 2025.

NRIs will benefit from provisions to increase the scope of tax profit. Along with the existing tax exemption on any income earned by NRI through derivative trade or participant notes, GIFT will also benefit those investing through foreign portfolio investors.

Earlier in August, the Finance Ministry had made the requirements easy for Indian companies wishing to be listed on international exchanges within the International Financial Services Centers (IFSC) as per global standards. Amendments will provide easy access to global capital for Indian start-up and Sunrise and Technology companies.

Under the Foreign Exchange Management (Non-Loan Equipment), 2019 and Companies (Listing of Equity Shares in Permitted Judges) Rules, 2024, 'Direct listing of equity shares of corporate companies in India on international exchanges' provides a comprehensive regulatory framework, With which public Indian companies can release and list their shares in international stock exchanges permitted in GIFT-IFSC.

These initiatives are in line with the government's goal of providing a tight and world -class regulatory and business environment in IFSCs, which will strengthen India's position in the global financial system.