India's GIFT City is rapidly emerging as a significant international financial hub, attracting considerable interest from payment companies and multinational firms. JPMorgan Chase & Co. reports that over 100 companies have approached them to explore banking and payment solutions for corporate treasury operations in GIFT City over the next 12 to 18 months. This surge in interest is unprecedented, according to Guhaprasath Rajagopal, managing director and head of payments at JPMorgan India. The ability to offer foreign-currency accounts alongside rupee capabilities is a major draw, providing a unique advantage for these firms.
HSBC and Visa executives also highlight GIFT City's potential to provide Indian customers with greater access to foreign currency and international financial products from within India. Deepthi Sirvuri, head of cards and retail lending at HSBC India, noted that the International Financial Services Centre at GIFT City can address financial needs that previously required customers to look outside India. The platform allows customers to hold foreign currency in India, reducing the need for repeated currency conversions and potentially lowering costs for global travelers, NRIs, and those planning overseas investments or expenditures. This framework could also facilitate the development of card-linked products backed by multi-currency deposits.
The strategic importance of GIFT City is further underscored by the National Payments Corporation of India (NPCI) receiving in-principle approval from the International Financial Services Centres Authority (IFSCA) to establish an office there. NPCI, which applied for this presence three to four months ago, has also acquired office space in the IFSCA Towers. This move is expected to strengthen India's fintech infrastructure, especially given NPCI's international arm, NIPL, is actively expanding UPI's overseas reach, including international merchant acceptance and cross-border payment and remittance corridors. This aligns with the broader goal of making international payments more seamless, secure, instantaneous, and cost-efficient, as articulated by Rishi Chhabra, country head at Visa India.
