Gujarat’s GIFT City gets a new foreign member on its premises. India’s International Financial Services Center Authority (IFSCA) has approved a Singapore-based multinational bank and financial services corporation, the Development Bank of Singapore (DBS), to open its international banking unit (IBU) at Gujarat’s GIFT City.
According to the officials at GIFT City, the entry of the Singapore Exchange (SGX) Nifty at GIFT City has made the city a prime location for the banking and financial sector.
The international banking unit was inaugurated by Singapore’s Finance Minister and Deputy Prime Minister on the 16th of July, 2023, with witnessing officials from IFSCA, the MAS (Monetary Authority of Singapore) and GIFT City.
With this big announcement, the DBS officials added that the banking institute would offer financial services like treasury operations, trade finance, derivatives and external credit borrowing (ECB) at GIFT City’s DBS IBU. Adding to this, the DBS’s IBU will also offer loans in foreign currencies and trade finance businesses. for a few initial years
The multinational bank has also estimated to conduct the business of $1 billion within the first year of the bank operations. Gradually with the increase in business, the bank will also expand the range of offerings from the financial hub, including solutions for its private banking clients. The inauguration of DBS IBU at GIFT IFSC will significantly improve India’s financial condition.
Amidst all this, the Executive Director of IFSCA at GIFT City, Dipesh Shah, stated that “IFSC at GIFT City is emerging faster than expected as the most preferred jurisdiction for international financial services. A large number of transactions for Indian corporates, which were earlier structured from centers situated outside the Indian borders, are now navigating to IFSC. The government's main objective to onshore the offshore financial services is gaining momentum with large Indian and foreign banks seeing multifold jumps in their businesses at GIFT City.”
Since 2020, 25 Indian and 10 foreign banking institutes have opened their banking units at GIFT City IFSC.
Establishing the DBS IFSC center is expected to have far-reaching implications for India's financial sector and GIFT City's growth trajectory. As more international banks and financial institutions set up their operations in GIFT City, India's position as a global financial powerhouse is further solidified.
The move also aligns with the Indian government's vision of transforming the country into a global financial hub. With the support of major players like DBS, GIFT City will likely attract increased foreign investments, stimulate economic growth, and generate employment opportunities in the region.
DBS's commitment to sustainable practices and digital innovation is expected to be reflected in the operations of its IFSC center in GIFT City. Embracing cutting-edge technology, the bank aims to offer seamless and efficient services to its clients while contributing to the government's vision of a digitally empowered India.
In Conclusion
DBS's decision to establish an IFSC center in GIFT City marks a significant milestone in India's financial landscape. The move is expected to bolster the bank's position in the country and provide new opportunities for its clients.
With its visionary framework and state-of-the-art infrastructure, GIFT City continues to attract top global players, positioning India as a formidable force in the world of finance. As the project takes shape, the nation eagerly awaits its positive impact on India's economic growth and its standing in the global financial community.
The establishment of such powerful financial institutes will not only impact India’s economic growth, but it will also significantly impact the country’s real estate sectors, as these powerful commercial establishments will also need to have powerful commercial properties.
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