IBUs can undertake a wide range of international banking activities that are typically handled by offshore branches.

• Foreign Currency Business: Accept deposits and extend loans to non-residents and other IFSC entities in any foreign currency.
• Trade Finance: Issue, advise, and negotiate Letters of Credit (LCs), Bank Guarantees, and other trade finance instruments for international trade.
• External Commercial Borrowings (ECBs): Act as an arranger or lender for ECBs raised by Indian and foreign companies.
• Syndicated Lending: Participate in or lead international loan syndication for large-scale projects and corporate financing.
• Wealth Management: Offer sophisticated wealth management and advisory services to a global client base.

The regulatory framework for IBUs is designed to be robust yet flexible, benchmarked against the best global financial centers.

• IFSCA as Unified Regulator: The IFSCA is the single point of contact for all regulatory matters, streamlining supervision and reducing compliance overhead compared to dealing with multiple domestic agencies.
• Prudential Norms: IBUs are required to maintain capital adequacy and liquidity ratios that are aligned with global Basel III standards, ensuring financial stability.
• Exemption from Domestic Requirements: A key feature is the complete exemption from the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements applicable to domestic banks.
• AML/CFT Compliance: All IBUs must adhere to stringent Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) norms, ensuring the integrity of the financial system.

Operating an IBU from GIFT City offers significant financial and strategic advantages over both domestic and other offshore locations.

• 10-Year Profit-Linked Tax Holiday: Enjoy a 100% tax exemption on profits earned by the IBU for 10 consecutive years out of a 15-year period.
• No CRR/SLR Requirements: This is a major competitive advantage, as it frees up capital that would otherwise be locked with the central bank, allowing for more efficient lending and improved profitability.
• Access to Global Markets: Seamlessly raise funds from international markets and lend to global clients without the restrictions of the domestic Indian banking system.
• Onshoring Offshore Business: Bring your parent bank's international loan book and other foreign currency business to your IBU in India, leveraging the country's talent and cost advantages.

Our experts help you maximize these benefits to build a highly profitable and competitive international banking operation.