How to Open a GIFT City Account - The Complete Guide for NRIs

"Can I open a GIFT City account without visiting India?"

This is one of the most common questions we get in our WhatsApp community. 

And the answer is yes. With video KYC now available, NRIs can open accounts from Dubai, London, New York, or anywhere in the world.

At Belong, we've helped many NRIs navigate GIFT City. 

We've seen the confusion around documentation, the uncertainty about which bank to choose, and the genuine worry about whether this is safe.

This guide answers everything. By the end, you'll know exactly what you need, how the process works, and whether GIFT City is right for you.

What is GIFT City and Why Does It Matter for NRIs?

Gujarat International Finance Tec-City (GIFT City) is India's first and only International Financial Services Centre (IFSC). 

Located in Gandhinagar, Gujarat, it operates as a special economic zone designed specifically for international finance.

Here's what makes it unique: Under India's Foreign Exchange Management Act (FEMA), GIFT City is treated as "foreign territory" for financial purposes.

This means you can hold accounts, invest, and transact entirely in foreign currencies like USD, EUR, or GBP without converting to rupees.

The centre is regulated by the International Financial Services Centres Authority (IFSCA), a unified regulator that combines the powers of RBI, SEBI, IRDAI, and PFRDA under one roof. 

As of 2025, GIFT City hosts 32 banks, over 272 Alternative Investment Funds, and 47 insurance companies.

For NRIs, GIFT City solves three persistent problems: currency risk (your money stays in dollars), tax complications (interest is tax-free in India), and repatriation hassles (funds move freely).

👉 Tip: Think of GIFT City as Singapore or Dubai, but located in India. You get international-standard banking with the comfort of dealing with familiar Indian banks like SBI, HDFC, and ICICI.

Who Can Open a GIFT City Account?

GIFT City accounts are designed exclusively for non-residents. Here's who qualifies:

Eligible individuals:

• Non-Resident Indians (NRIs) living abroad for employment or business
• Overseas Citizens of India (OCI) cardholders
• Persons of Indian Origin (PIO)
• Foreign nationals and foreign companies

Who cannot open accounts:

• Resident Indians (with limited exceptions under LRS for specific purposes)
• Indian companies incorporated in the domestic tariff area

If you're unsure about your residential status, use our Residential Status Calculator to confirm. Your status determines not just account eligibility but also how your income gets taxed in India.

Types of Accounts Available in GIFT City

GIFT City banks offer several account types, each serving different purposes:

Global Savings Account

This is the most popular option for NRIs. 

You can hold funds in multiple foreign currencies (USD, GBP, EUR, AED, and others) and earn interest on your daily balance. Unlike fixed deposits, you can add or withdraw funds anytime.

Interest rates on savings accounts range from 2.5% to 5% annually depending on the bank. ICICI, Yes Bank, and Federal Bank currently offer higher rates around 4-5%, while SBI, HDFC, and Axis offer 2.5-3%.

Global Current Account

Designed for NRIs with frequent transactions. 

These accounts are typically non-interest bearing but offer features like international wire transfers, multi-currency holdings, and business transaction capabilities.

Foreign Currency Term Deposits (Fixed Deposits)

Similar to FCNR deposits but with key advantages. GIFT City FDs have no minimum tenure requirement (unlike FCNR's mandatory 1-year minimum), offer competitive rates, and provide complete tax exemption in India.

Current USD FD rates range from 4% to 6% annually depending on tenure and bank. Compare rates using Belong's NRI FD Comparison Tool.

Trading and Demat Accounts

For NRIs wanting to trade on GIFT City exchanges (NSE IFSC and India INX), you'll need a separate trading and demat account with an IFSCA-registered broker. 

This allows access to US stocks through Unsponsored Depository Receipts (UDRs), derivatives, and global securities.

👉 Tip: Start with a savings account or FD to understand how the system works. You can always add a trading account later when you're comfortable.

Banks Operating in GIFT City

Most major Indian banks have established IFSC Banking Units (IBUs) in GIFT City. Here's a comparison of key players:

International banks like HSBC and Standard Chartered also operate in GIFT City, offering global banking continuity for NRIs who already have accounts with them overseas.

Learn more about GIFT City banks and their specific offerings.

Documents Required for GIFT City Account Opening

One of GIFT City's advantages is simplified KYC. Unlike domestic NRI accounts, you don't need Aadhaar or PAN card for basic account opening (though PAN is required for certain transactions and to claim DTAA benefits).

Essential Documents

For identity verification:

• Valid passport (minimum 6 months validity, clear colour scans of first and last pages)
• OCI card (if applicable)

For NRI status proof:

• Valid visa or residence permit
• Employment/work permit
• Tax Residency Certificate from your country of residence

For address verification (overseas):

• Utility bill (electricity, gas, water) not older than 3 months
• Foreign bank statement (not older than 3 months)
• Note: Mobile phone bills are often rejected

For source of funds:

• Bank statements from the last 6 months showing where the money originates
• Salary slips or income proof (some banks require this)

👉 Tip: Get your Tax Residency Certificate (TRC) from your country of residence before starting the application. For UAE residents, you can obtain this from the Federal Tax Authority. This document is essential for claiming DTAA benefits later.

Step-by-Step Account Opening Process

Here's exactly how to open a GIFT City account:

Step 1: Choose Your Bank

If you're an existing customer of an Indian bank, start there. Your relationship manager can often fast-track the GIFT City account opening. If not, compare banks based on:

• Interest rates offered
• Currencies you need
• Online banking quality
• Customer service responsiveness

Step 2: Initiate the Application

Option A: Through existing bank relationship 

Contact your bank's NRI services team and ask specifically for "GIFT City Account Opening Form." They'll assign a relationship manager to guide you through the process.

Option B: New customer 

Visit the bank's GIFT City website (most banks have separate portals for their IBU operations) and fill out the online application form.

Option C: Through platforms like Belong Download the Belong app to complete KYC in 5 minutes. 

If you're in the UAE, we arrange in-person verification at your convenience. If you're in India, we do it via video call.

Step 3: Submit KYC Documents

Prepare digital scans of all required documents. Most banks accept:

• Self-attested copies for online submission
• Notarised copies for non-face-to-face verification
• Embassy-attested documents (required by some banks)

Step 4: Complete Verification

Video KYC (now available for most banks)

Following IFSCA's July 2025 guidelines, video-based customer identification (V-CIP) is now available for NRIs in selected countries including UAE, US, UK, Canada, Singapore, Germany, France, Japan, and South Korea.

During video KYC:

• Ensure stable internet connection
• Have physical documents ready for display
• Good lighting is essential
• The representative will verify documents and perform liveness checks

In-person verification (if video KYC unavailable)

• An agent visits your location abroad, or
• You visit the bank's office during India visit, or
• You get documents notarised by embassy/consulate

Step 5: Fund Your Account

Once approved (typically 3-5 business days with video KYC), fund your account via:

• SWIFT transfer from your overseas bank account
• Wire transfer (include account number as reference)

Important: Do not transfer funds from your NRO account. This complicates the tax status and defeats the purpose of GIFT City's foreign currency structure.

Step 6: Activate and Start Using

After the first credit transaction is verified, your account becomes fully operational. You'll receive:

• Internet banking credentials
• Account details for future transfers
• Access to investment products

👉 Tip: Transfer a small amount first ($100-500) to test the system before moving larger sums. This helps you understand the process and timeline.

Video KYC: The Game-Changer for NRIs

The introduction of video KYC in 2025 has transformed GIFT City account opening. Previously, NRIs had to either visit India or arrange for notarised documents through embassies, a process that could take weeks.

Now, the Video-based Customer Identification Process (V-CIP) allows complete remote onboarding. Here's what you need to know:

How it works:

• Schedule a video call with the bank's verification team
• AI-based facial recognition matches your face to passport photo
• Liveness detection ensures you're actually present (not a photo or video)
• Geo-tagging records your location
• All data is encrypted for security

Eligibility:

• Available for NRIs in low-risk jurisdictions (UAE, US, UK, Canada, Singapore, Germany, France, Japan, South Korea)
• Requires current address proof from these countries
• Must meet standard KYC requirements

Timeline:

• Video call: 15-30 minutes
• Account activation: 3-5 business days
• First transfer: 2-3 business days via SWIFT

Investment Options Once Your Account is Open

A GIFT City bank account is your gateway to various investment products. Here's what becomes accessible:

Foreign Currency Fixed Deposits

The safest option for risk-averse NRIs. Earn 4-6% annually in USD with complete tax exemption in India. Tenures range from 7 days to 39 months, offering more flexibility than FCNR deposits.

Compare current FD rates across all GIFT City banks.

Mutual Funds

GIFT City hosts mutual funds from major Indian AMCs that invest in Indian equities and debt. The key advantage: no TDS at redemption. Funds like Tata India Dynamic Equity Fund accept investments starting from just $500.

Explore all options on our GIFT City Mutual Funds Explorer.

Alternative Investment Funds (AIFs)

For higher-return potential, AIFs offer exposure to private equity, real estate, infrastructure, and venture capital. Following February 2025 changes, minimum investment dropped from $150,000 to $75,000.

Category III AIFs provide complete capital gains tax exemption for NRIs on specified securities. Browse available funds in our GIFT City AIFs Tool.

Portfolio Management Services (PMS)

Tailored investing for amounts above $150,000. Professional fund managers handle your portfolio based on your risk profile and goals.

Global Equities and Bonds

Through NSE IFSC and India INX exchanges, access US stocks (Apple, Tesla, Amazon) via Unsponsored Depository Receipts (UDRs), global bonds, and derivatives. Trading happens in USD with no Securities Transaction Tax.

Insurance Products

USD-denominated life and health insurance plans are available from insurers like Tata AIA (Life Protect Supreme), HDFC Life International, ICICI Lombard, and others. These products ensure your family's protection isn't eroded by future currency depreciation.

From April 2025, life insurance proceeds from IFSC policies are fully tax-exempt regardless of premium amount (as long as premium doesn't exceed 10% of sum assured).

👉 Tip: New to GIFT City? Start with fixed deposits to understand how the system works. Graduate to mutual funds or AIFs later when you're comfortable with the ecosystem.

Tax Benefits: Why GIFT City Beats Traditional NRI Accounts

This is where GIFT City truly shines. The tax advantages are substantial:

In India

• Interest on deposits: Completely tax-free. No TDS, no filing required for GIFT City income.
• Capital gains on specified securities: Exempt for NRIs trading on IFSC exchanges.
• No Securities Transaction Tax (STT): Unlike domestic exchanges.
• No Commodities Transaction Tax (CTT).
• No stamp duty on transactions.
• No GST on offshore services.
• Insurance proceeds: Tax-free under amended Section 10(10D) from April 2025.

For UAE NRIs Specifically

Since UAE has no personal income tax, your GIFT City returns are effectively tax-free globally. You earn interest in dollars, pay no Indian tax, and pay no UAE tax. This is the cleanest tax structure available for UAE-based NRIs.

If you're from countries with income tax (US, UK, Canada), you'll still need to declare this income in your home country. However, you can claim credit for any Indian taxes paid under applicable Double Taxation Avoidance Agreements.

For UAE NRIs, get detailed guidance on India-UAE DTAA benefits.

Tax Holiday for Entities

Businesses operating from GIFT City enjoy a 10-year tax holiday out of a 15-year block, extended through Budget 2025 until March 2030.

GIFT City vs NRE/NRO/FCNR: Which is Better?

Understanding the differences helps you decide where to park your money:

Key insight: GIFT City combines the tax benefits of NRE accounts, the currency protection of FCNR deposits, and adds flexibility that neither offers. The main trade-off is the absence of deposit insurance.

Read our detailed comparison: GIFT City FDs vs Bank FDs.

Repatriation: Getting Your Money Out

One of GIFT City's biggest advantages is seamless repatriation. Since your account operates in foreign currency and exists in what's treated as "foreign territory," there are no restrictions on moving your money.

How it works:

• Instruct your bank to wire funds to your overseas account
• Transfer happens via SWIFT
• Typical timeline: 2-3 business days
• No RBI approval needed
• No limit on amount

Compare this to NRO accounts, which require compliance certificates and have annual repatriation caps of $1 million.

For detailed guidance, see our repatriation guide for NRIs.

Is GIFT City Safe? Understanding the Risks

Every investment involves trade-offs. Here's an honest assessment:

What makes it safe:

• Regulated by IFSCA: A statutory authority established by the Government of India with strict compliance norms.
• Major banks operate there: SBI, HDFC, ICICI, and other trusted names have IBUs in GIFT City.
• International standards: Capital adequacy requirements often exceed domestic banking norms.
• Transparent operations: Regular audits and reporting requirements.

What you should know:

• No deposit insurance: Unlike domestic accounts covered up to ₹5 lakh by DICGC, GIFT City deposits don't have insurance coverage. However, the banks themselves are regulated and capitalised.
• Relatively new ecosystem: GIFT City has been operational since 2015, but many NRI-focused products are newer. The ecosystem is still evolving.
• Currency fluctuation (for non-USD investors): If your base currency is AED, holding USD exposes you to USD/AED movements. Since AED is pegged to USD, this risk is minimal for UAE NRIs.

👉 Tip: Don't put all your eggs in one basket. Use GIFT City as part of your overall portfolio, not as your only investment destination.

Common Mistakes to Avoid

Based on our experience helping NRIs, here are frequent errors:

1. Transferring from NRO Account

Funds from NRO accounts complicate your tax status. Always transfer fresh foreign currency from your overseas bank directly to GIFT City.

2. Incomplete Documentation

Missing or incorrectly attested documents cause delays. Double-check everything before submission.

3. Ignoring Home Country Tax Rules

While GIFT City interest is tax-free in India, you may still owe taxes in your country of residence. US NRIs particularly face complex PFIC rules for mutual funds. Consult a tax advisor familiar with your jurisdiction.

4. Not Understanding Product Differences

A savings account, FD, and AIF serve different purposes. Match the product to your goal.

5. Chasing Highest Rates Without Comparing Features

A slightly higher FD rate means nothing if the bank's online platform is terrible or customer service is unresponsive.

What Happens If You Return to India?

Planning to move back? Here's what changes:

• Your NRI status converts to Resident Indian
• GIFT City accounts cannot be held by residents (with limited exceptions)
• You'll need to close or convert accounts
• Notify your bank about the status change
• Funds can be transferred to your resident savings account

The conversion timeline depends on your bank's processes. Start early to avoid complications. Read our guide on converting NRI accounts after returning to India.

Your Next Steps

Opening a GIFT City account isn't complicated once you understand the process. Here's how to get started:

Step 1: Confirm your NRI status using our Residential Status Calculator.

Step 2: Compare current FD and savings rates across banks using Belong's NRI FD Comparison Tool.

Step 3: Gather your documents (passport, visa, address proof, bank statements).

Step 4: Choose your bank or platform. For the simplest experience, download the Belong app and complete KYC in minutes.

Have questions? Join our WhatsApp community where many NRIs share their experiences, ask questions, and help each other navigate GIFT City investments. It's free, and you'll find others who've been through exactly what you're planning.

Sources

• IFSCA Official Website: ifsca.gov.in
• IFSCA NRI Section: ifsca.gov.in/Pages/Contents/NRIs section
• SBI GIFT City: ifsc.statebank
• ICICI Bank GIFT City: giftcity.icici.bank.in
• HDFC Bank GIFT City: hdfcbankgiftcity.com
• Axis Bank IBU: axisbank.com/corporate/ifsc-banking-unit-ibu-gift-city
• HSBC India GIFT City: hsbc.co.in/nri/products/gift-city
• Zerodha Varsity - GIFT City Benefits: zerodha.com/z-connect/varsity/gift-city-benefits-for-nris