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GIFT City for NRIs

GIFT City lets an NRI open a foreign-currency deposit whose interest is tax-free in India — in dollars, pounds or euros, with no rupee-fall risk and no repatriation cap. This is the plain-English guide: how it works, the banks, the rates, a calculator, and how to open one in 4 steps.

Tax-freeinterest in India, no TDS

USD·GBP·EURforeign currency, no ₹ risk

~$1,000minimum to start

No $1M capfully repatriable

IFSCAIndia-regulated, on-shore

Why NRIs are moving to GIFT City

For any NRI — Gulf, USA, UK, Canada, Singapore — a GIFT City deposit does three things at once: interest tax-free in India (no TDS), your money kept in foreign currency (no rupee-fall risk), and no cap on taking it back out. Gulf-based NRIs get a bonus on top — because the Gulf charges no income tax, the interest is untaxed on both sides:

Gulf NRIs earn genuinely untaxed interest — no tax at home and none in India. NRIs in the USA, UK, Canada or Singapore still get the India exemption and no TDS; they simply declare the interest under their own country's global-income rules.

What is GIFT City, simply?

Think of GIFT City as an offshore financial zone on Indian soil. It has its own regulator (the IFSCA) and its own rules, so banks there can hold your money in foreign currency. For an NRI that means a deposit in dollars, pounds or euros — the interest is tax-free in India, there is no rupee-depreciation risk, and you can take it all back out with no annual repatriation limit.

GIFT City deposit calculator

Deposit amount

Currency

Interest rate

% p.a.

Tenure

years

Compounded yearly; rates are indicative and benchmark-linked — confirm with the bank. *Tax comparison assumes a 30% slab on the interest in a taxable deposit, for illustration only. Not tax advice.

Why tax-free matters — the same 5%, after tax

GIFT City deposit (tax-free)you keep 100%

5.0% kept

Taxable deposit at a 30% slabafter tax

3.5% kept

A tax-free 5% is worth what a ~7.1% taxable deposit would be for a 30%-slab investor. That gap is the real draw — not just the headline rate.

GIFT City vs FCNR vs NRE

Feature	GIFT City	FCNR	NRE
Currency held	Foreign (USD/GBP/EUR)	Foreign	Rupees (₹)
Interest taxed in India	No	No	No
Rupee-fall risk	None	None	Yes
Repatriation cap	None	None	None*
Typical rate	Benchmark-linked (often higher)	RBI-capped	Bank FD rates
Where you open it	Bank's IFSC desk, GIFT City	Any Indian bank	Any Indian bank
Minimum	~$1,000+	Low	Low

All three keep Indian tax off the interest; the trade-off is currency and rate. *NRE is repatriable but is rupee-denominated (NRO carries the $1M/year cap GIFT City avoids).

How to open one — in 4 steps

1Check you are eligibleYou must be an NRI, OCI or PIO. Keep your passport, visa or residence proof and overseas address ready — standard NRI KYC.

2Pick a bank & currencyCompare a couple of IFSC banks (rate, minimum, currencies, online onboarding). Decide the currency you earn/save in — USD, GBP, EUR, AED or SGD.

3Open the account onlineApply through the bank's GIFT City / IFSC desk — several banks now onboard NRIs fully online, no India visit needed.

4Fund it from abroadTransfer foreign currency into the deposit. Interest accrues tax-free in India; principal and interest stay fully repatriable.

Is GIFT City right for you?

A good fit if…

You're an NRI, OCI or PIO earning abroad
You want savings in USD/GBP/EUR, not rupees
You want tax-free, freely repatriable interest
You have about $1,000+ to deposit

Maybe not if…

You need the money in rupees in India (NRE may suit)
You want a very small deposit or branch walk-in
You're a US person — you still report it back home
You'll need it within days (short tenors pay less)

Banks with IFSC units at GIFT City

Bank	Type	Notes
IDFC FIRST Bank NRI deposits	Private	Dedicated NRI GIFT City account; USD/EUR/GBP deposits
HDFC Bank NRI deposits	Private	NRI GIFT City portal; FCY deposit from ~$1,000 (USD/EUR/GBP)
ICICI Bank NRI deposits	Private	Dedicated GIFT City NRI banking; FCY deposit from ~$1,000
Axis Bank NRI deposits	Private	FCY deposit from ~$1,100
Federal Bank NRI deposits	Private	NRI-focused foreign-currency deposits
HSBC NRI deposits	Foreign	Global NRI GIFT City account
Kotak Mahindra Bank	Private	IFSC Banking Unit — confirm NRI deposit terms
Yes Bank	Private	IFSC Banking Unit — confirm NRI deposit terms
IndusInd Bank	Private	IFSC Banking Unit — confirm NRI deposit terms
State Bank of India	Public	India's largest bank; IFSC Banking Unit
Bank of Baroda	Public	IFSC Banking Unit — trade & FCY
Punjab National Bank	Public	IFSC Banking Unit
Standard Chartered	Foreign	IFSC Banking Unit — corporate & trade
DBS Bank	Foreign	IFSC Banking Unit — corporate

Banks tagged NRI deposits run a dedicated NRI GIFT City deposit product (own IFSC portal); the rest operate an IFSC Banking Unit — confirm NRI deposit terms with the bank. Products, currencies and minimums vary.

Indicative deposit rates

Currency		Indicative rate
USD	US Dollar	4.5 – 5.5%
GBP	Pound Sterling	4.0 – 5.0%
EUR	Euro	2.5 – 3.5%
SGD	Singapore Dollar	2.5 – 3.5%
AED	UAE Dirham*	via USD

Ranges only — rates track international benchmarks (e.g. SOFR for USD) and each bank sets its own. Tenors run 7 days to 5 years. Always confirm the live rate.

Gold at GIFT City — the IIBX

GIFT City also hosts the India International Bullion Exchange (IIBX), India's exchange for importing and trading gold and silver. It is aimed at qualified jewellers and institutions rather than walk-in buyers — but it's why GIFT City matters for the gold trade, not just deposits. For everyday gold, see our gold rate today and the gold vs FD calculator.

Tax and regulatory points are summarised for general guidance and depend on your residency status; they can change. Not financial, tax or legal advice — confirm with the bank and a qualified adviser. Address: GIFT City, Gandhinagar, Gujarat 382355, India · Regulator: IFSCA — International Financial Services Centres Authority.

GIFT City — FAQs

GIFT City (Gujarat International Finance Tec-City) in Gandhinagar is India's first International Financial Services Centre — like an offshore financial zone, but on Indian soil, with its own regulator (IFSCA). Inside it, banks run IFSC units that deal in foreign currency, so an NRI can bank in dollars, pounds or euros without touching rupees.

For a non-resident, interest on an IFSC banking-unit deposit is exempt from income tax in India, with no TDS. Your country of residence may still tax it — but the Gulf states charge no personal income tax, so for many Gulf NRIs the interest is untaxed on both sides. US persons still report it back home. Confirm your position with a tax adviser.

Minimums start around US$1,000 at banks like HDFC and ICICI (Axis ~US$1,100). Deposits come in USD, GBP, EUR, AED and SGD, for tenors from 7 days to 5 years. Rates are linked to international benchmarks, so USD deposits are commonly ~4.5–5.5%.

Yes — GIFT City IFSC deposits are fully repatriable and, unlike an NRO account, carry no US$1 million-a-year repatriation limit. The money and interest move out cleanly.

All three keep Indian tax off the interest. GIFT City and FCNR are in foreign currency (no rupee-fall risk); NRE is in rupees. GIFT City rates track global benchmarks and can beat FCNR, and there is no repatriation cap — but you open it at a bank's IFSC desk and minimums are higher.

Most large Indian banks run an IFSC Banking Unit — IDFC FIRST, HDFC, ICICI, Axis, Federal, Kotak, SBI, Bank of Baroda, PNB — plus foreign banks like HSBC, Standard Chartered and DBS. Products and minimums vary; check the bank's GIFT City desk.