Indian Overseas Bank (IOB) has received approval from the International Financial Services Centres Authority (IFSCA) to establish an IFSC Banking Unit (IBU) at GIFT City in Gujarat.
GIFT City stands for Gujarat International Finance Tec-City. It is a planned business district and India’s first operational smart city and International Financial Services Centre (IFSC). Located in Gujarat between Ahmedabad and Gandhinagar, it functions as a global financial and IT hub that operates under an international financial framework.
GIFT City hosts 38 authorized banking units. This includes a mix of prominent domestic and international institutions operating as IFSC Banking Units (IBUs).
- Domestic Banks: 17 (e.g., State Bank of India, HDFC, ICICI, Bank of Baroda, and Kotak Mahindra)
- Foreign Banks: 18 (e.g., JPMorgan, HSBC, Citibank, Standard Chartered, and Deutsche Bank)
According to the Indian Overseas bank, the Reserve Bank of India (RBI) had already granted permission in December 2025 for setting up an IFSC Banking Unit at GIFT IFSC, Gujarat. Following this approval, IOB has now received the required license from IFSCA through a letter dated June 1, 2026. The license allows the bank to open and operate an IFSC Banking Unit as a branch at GIFT City.
GIFT City, located in Gujarat, is India’s first International Financial Services Centre and serves as a hub for international banking and financial activities. By opening an IFSC Banking Unit, Indian Overseas Bank will be able to provide various international banking services, including foreign currency transactions, trade finance, offshore banking services and other financial products to eligible customers.
The bank said that the license granted by IFSCA has perpetual validity, which means it does not have a fixed expiry date. However, the license will remain subject to the rules, regulations and conditions prescribed by IFSCA from time to time.
The establishment of an IFSC Banking Unit is expected to strengthen IOB’s presence in international banking and help the bank expand its business opportunities in global financial markets. The move will also enable the bank to serve international clients and participate more actively in cross-border financial activities from GIFT City.
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