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A Guide to GIFT City NRI Accounts, Foreign Currency FDs & IFSC Tax Benefits

Key Takeaways

GIFT City offers NRIs a globally integrated banking and investment ecosystem in India.
IFSC accounts provide currency flexibility and seamless cross-border transactions.
NRIs can grow and manage their wealth efficiently through tax-efficient financial products.

23 Feb 2026 by Team FinFIRST

Gift City IFSC NRI Accounts, FDs & Tax Benefits

Open an Account

As a Non-Resident Indian (NRI), your financial journey gets an upgrade with GIFT City (Gujarat International Finance Tec-City). From managing your money in your homeland to saving and growing your funds in global currencies, this smart city makes it all possible.

Hosting the country’s first International Financial Services Centre (IFSC), GIFT City brings the best of global investment to Indian soil. With its wide range of financial products offered in foreign currencies, you can bank and invest globally without restrictions. This also means you get to enjoy NRI tax benefits with GIFT City. Learn more about the GIFT City NRI accounts and tax rules you can leverage in this blog.

Retirement planning for NRIs: Tips for building a secure future

The future of NRI Banking

GIFT IFSC offers a range of NRI accounts to suit your different financial needs and goals. Here’s a brief look at the types of NRI accounts and GIFT City IFSC taxation rules applicable to them:

Savings Account

A GIFT City global savings account allows you to hold your deposits in a foreign currency. This makes everyday banking, holding your interest earnings, and linking to investments a breeze. You can avoid the hassle of currency conversions. The interest income earned on the Savings Account is exempt from tax as per the GIFT City NRI account tax rules.

Current Account

If you are involved in business or trade in high-value transactions across borders that require multi-currency support, this account is for you. It offers you the flexibility you need for frequent fund transfers to manage your business inflow and outflow smoothly. As current accounts don’t earn interest income, no taxation rule applies.

Investment Accounts

GIFT City opens a vast avenue to invest for NRIs. IFSC stock exchanges like India NX and NSE IX open you up to global equities, debt instruments, and ETFs, all in foreign currencies.

These NRI investments in India are tax-free. No capital gains tax is applicable to your returns*.

*Subject to the conditions detailed under Sections - (10(4D)), (10(4E)), (10(4H)), (47(viiab)), (47(viiad)).

Currency Flexibility in Different NRI Accounts

Under the provisions of regulations, the International Financial Services Centres Authority (IFSCA) lists these freely convertible currencies to accept deposits for NRI Accounts:

Euro – EUR

US Dollar – USD

UK Pound Sterling - GBP

Australian Dollar – AUS

New Zealand Dollar - NZD

Canadian Dollar - CAD

Swiss Franc – CHF

Japanese Yen - JPY

Singapore Dollar - SGD

Hong Kong Dollar - HKD

Swedish Krone - SEK

Russian Rouble – RUB

UAE Dirham - AED

Danish Krone - DKK

Norwegian Krone – NOK

While International Banking Units (IBUs) under GIFT City are authorised to maintain NRI accounts in these currencies, some banks may have their own rules governing the currencies they are operational in. It’s a good idea to check this to get more clarity; for example, IDFC FIRST Bank is currently operational in USD and EUR currencies.

Fixed Deposits in IFSC

Parking your surplus funds in GIFT City FD is a lucrative decision thanks to these value-packed features:

Attractive rates:

You earn competitive interest rates on foreign currency deposits, subject to the amount and duration (ranging between 7 days to 5 years) of your NRI FD.

Global currency options:

You can deposit in any of the freely convertible currency options approved under IFSCA guidelines.

Tax-efficient structure:

NRI tax benefits with GIFT City FD translate to the interest income on your NRI FD. It is exempt from taxation in India.

Access to International Investment Avenues

GIFT IFSC is a platform that lets you engage in the thriving financial market of India and global equities. As you can invest in foreign currency, it opens doors to enter international markets without domestic compliance hurdles.

The IFSC Stock Exchanges: India INX and NSE IX operate for 22 hours a day across various time zones. You can trade in US stocks, global indices, ETFs, global derivatives, and debt instruments from wherever you are.

How IDFC FIRST IBU Helps Every Step of the Way

IDFC FIRST Bank, as an IBU, lets you access the convenience, global connect, and NRI tax benefits that come with GIFT City accounts. Here are some of the

Simplified Onboarding:

You can carry out the account opening process online with minimal paperwork and simple steps. A relationship manager will help you along the way.

Compliance:

As an authorised IBU, IDFC FIRST Bank is fully compliant with the IFSCA guidelines to ensure you avoid regulatory hurdles as an NRI.

Product access:

All the possible products you will need to propel your financial journey, like banking accounts, FD, and investments, are covered in IDFC FIRST Bank GIFT City Accounts.

Your all-round financial solution with flexible currency deposits and NRI tax benefits at GIFT City is a few clicks away with IDFC FIRST Bank!

Disclaimer

Please note that the information provided in this article is strictly based on the provisions of the Income-tax Act, 1961. It does not reflect the amendments or provisions introduced under the newly enacted Income-tax Act, 2025, which will come into effect from 1 April 2026.

Readers are strongly advised to consult their professional Tax Advisor to obtain accurate guidance tailored to their specific circumstances and to ensure proper interpretation and applicability of the relevant tax laws.

Frequently Asked Questions

Can I convert my existing NRE/NRO account into a GIFT City account?

GIFT City account is different from an NRE account or an NRO account and is governed by IFSCA regulations. Thus, you’ll need to open them separately with an authorised IBU like IDFC FIRST Bank - NRIs can open savings, current, and corporate IBU accounts.

Are Fixed Deposits in GIFT City tax-free for NRIs?

Certain IFSC FDs offer tax-efficient interest, unlike regular onshore FDs, subject to compliance

Can NRIs invest in international mutual funds through GIFT City?

NRIs can invest in international mutual funds listed on global indices.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.