IDFC FIRST Bank has introduced a new savings account, the IDFC FIRST Global Savings Account, specifically designed for non-resident Indians (NRIs) in GIFT City, Gujarat. This account allows customers to hold and operate savings in foreign currencies, such as US dollars or euros, through the bank’s GIFT City banking unit. The account is distinct from the bank’s existing domestic and NRI savings accounts and caters to customers who prefer to manage their savings in foreign currencies.
The IDFC FIRST Global Savings Account offers several benefits, including full repatriation of principal and interest without restrictions, digital onboarding, and paperless international fund transfers from GIFT City to overseas accounts without any fees. The account also offers an interest rate of 4.75% on US dollar savings balances, with interest credited monthly. Customers can also place fixed deposits in US dollars or euros.
One of the key advantages of this account is that the interest earned is exempt from tax deduction at source (TDS) for NRIs, in line with applicable regulations for GIFT City accounts. Account holders can manage both their NRI banking and GIFT City accounts through a single mobile banking application and relationship management framework.
The launch of this account is aimed at addressing the needs of NRIs who want to hold savings in foreign currencies while banking with India through a regulated international financial centre. GIFT City has emerged as a hub for banks to offer foreign currency accounts and cross-border financial services under a separate regulatory framework. Several Indian and international banks have expanded their presence in the centre to cater to global investors and overseas Indians.
According to Ashish Singh, Head of Retail Liabilities at IDFC FIRST Bank, the launch of the IDFC FIRST Global Savings Account is a significant step towards providing NRIs with a convenient and regulated platform to manage their foreign currency savings. The account is expected to attract NRIs who are looking for a hassle-free and tax-efficient way to manage their foreign currency savings while maintaining a connection with India.