How GIFT City Can Support Cross-Border Treasury Operations for Global Firms

Corporate treasury centres are one of the fastest-moving segments in GIFT IFSC. In October 2026, Business Standard reported that around a dozen treasury centres were approved or operational, with nearly as many applications under review. It also reported that their loans and advances had reached USD 6.54 billion as of June 2026.

The reason is practical. Many groups that operate across borders still run treasury in fragments: separate bank relationships in each country, idle cash in one subsidiary while another borrows, and currency risk hedged entity by entity.

GIFT City treasury services offer a regulated way to bring those functions under one roof, inside India's International Financial Services Centre (IFSC).

This guide is for CFOs, group treasurers and finance heads of global and Indian multinational groups. It explains how the treasury centre framework works, what a centre can do, what it takes to set one up, and the points to settle before you commit.

What Are GIFT City Treasury Services?

In GIFT IFSC, a group's treasury hub is set up as a Global/Regional Corporate Treasury Centre (GRCTC). It is registered as a finance company under the IFSCA (Finance Company) Regulations, 2021.

The current rules sit in IFSCA's revised GRCTC framework, issued on 4 April 2025. It replaced the original 2021 circular and widened what a treasury centre can do.

Two features define the model:

• It serves its own group: A GRCTC provides treasury services to entities within its group, not to outside customers.

• It can serve Indian and foreign group entities: The parent and group companies can be resident in India or abroad. Dealings with India-resident entities must comply with the Foreign Exchange Management Act (FEMA).

A GRCTC can be set up as a company in the IFSC (a finance company) or as a branch of an Indian or foreign company (a finance unit).

What Can a GIFT City Treasury Centre Do?

The 2025 framework lists the activities a GRCTC may undertake for its group. Grouped by treasury function, they look like this:

Treasury function	Permitted activities under the framework
Funding	Raising capital through equity, borrowing (including inter-company deposits), and credit arrangements such as guarantees and performance bonds
Liquidity	Liquidity management, including cash pooling
Investment	Transacting or investing in financial instruments, in or outside the IFSC
Risk management	Foreign exchange transactions and OTC or exchange-traded derivatives
Trade and working capital	Factoring and forfaiting (with separate registration as a factor) and acting as a re-invoicing centre
Group support	Managing insurance and pension obligations, advisory on financial and risk management, and acting as a holding company

In practice, this lets one entity act as the group's in-house bank: it can borrow centrally, lend to subsidiaries, pool surplus cash and hedge exposures for the whole group.

Why Cross-Border Treasury Management Fits GIFT IFSC

A treasury centre only makes sense if it improves control, cost or risk. GIFT IFSC offers several structural advantages for cross-border treasury management.

❏ Foreign Currency by Design

Transactions within the IFSC are carried out in specified foreign currencies. A group can hold and move US dollars or other major currencies without converting through rupees at each step.

For business outside the IFSC, a treasury centre may also open a Special Non-Resident Rupee (SNRR) account with an authorised dealer bank in India.

❏ One Hub for Indian and Overseas Entities

Because service recipients can be resident in India or abroad, an Indian multinational can serve both its domestic and overseas subsidiaries from one place, subject to FEMA. A foreign group can do the same for its Indian operations.

❏ Pooling Through IFSC Banks

Cash pooling runs through a header account with an IFSC Banking Unit or another permitted IFSC bank. This keeps the group's liquidity within one regulated banking ecosystem.

❏ A Competitive Tax Position

Eligible IFSC units can claim a 100% deduction on qualifying income for 20 consecutive tax years out of 25, following the Finance Act, 2026, subject to conditions.

Indian tax law also provides specific reliefs for qualifying treasury centre transactions, including on certain interest payments to non-residents. These depend on the facts and conditions of each case, so they should be confirmed with a tax adviser.

❏ Time Zone and Talent

GIFT City sits in a time zone that overlaps with Asian, Middle Eastern and European business hours. Its proximity to Ahmedabad and Gandhinagar gives access to finance and accounting talent.

What Does It Take to Set Up GIFT City Treasury Operations?

The framework does not set a minimum turnover or net worth for the parent group.

The requirements focus instead on jurisdiction, substance and capital at the treasury centre itself.

✦ Eligibility

The parent must not be from a jurisdiction listed in the Financial Action Task Force (FATF) public statement on high-risk jurisdictions. Each service recipient must be registered with a competent body in its home jurisdiction.

✦ Substance

IFSCA expects a real operation in GIFT City, not a booking entity:

• Office and infrastructure: Office space, equipment and communication facilities in the IFSC.

  
  

• People: At least five qualified personnel based in the IFSC before operations begin, including a Head of Treasury and a Compliance Officer.

  
  

• Governance: Board-approved policies on corporate governance, risk management and permissible activities, plus AML/KYC compliance.

✦ Capital and Fees

Item	Requirement under the 2025 framework
Minimum owned fund	USD 0.2 million, maintained at all times (a finance unit may maintain it at parent level)
Application fee	USD 1,000, one-time
Registration fee	USD 12,500, one-time
Recurring fee	USD 25,000 per year

Fee levels can change through IFSCA circulars, so check the latest position before you budget.

How to Set Up a Treasury Centre in GIFT IFSC: Step by Step

The registration path under the framework generally runs as follows.

1. Build the business case: Map the group's cash flows, banking relationships, currency exposures and funding needs, and decide which functions will move to the centre.

   
   

2. Choose the structure: Decide between a finance company and a finance unit (branch), and identify the entities the centre will serve.

   
   

3. Secure premises and SEZ approval: Arrange office space in the IFSC and obtain the Letter of Approval under the SEZ Act, 2005, which must stay valid.

   
   

4. Apply through SWIT: File the application on IFSCA's Single Window IT System, including the list of intended service recipients and the required policies.

   
   

5. Respond and meet conditions: IFSCA may grant provisional registration. Deficiencies must generally be addressed within 30 days.

   
   

6. Receive the Certificate of Registration: The centre cannot start business before this certificate is issued and fees are paid.

   
   

7. Commence operations: Operations must begin within six months of registration, with extensions of up to three months possible.

For a broader view of sequencing IFSC approvals, see our guide on planning regulatory approvals for a new financial business in GIFT City.

Key Considerations Before You Commit

A treasury centre changes how money moves across the group. These points deserve attention early.

• FEMA for Indian entities: Lending to or borrowing from India-resident group companies is governed by FEMA, including the rules on foreign currency borrowing. Plan these flows before you design the pooling structure.

  
  

• Transfer pricing: Intra-group loans, guarantees and treasury fees must be priced at arm's length in every jurisdiction involved.

  
  

• Home-country rules: Foreign parents should check how their own tax and regulatory regimes treat a treasury hub in India.

  
  

• Derivatives limits: OTC derivatives that are not permitted within the IFSC may only be transacted with counterparties outside it.

  
  

• Change in control: A change of 20% or more in shareholding, or in decision-making control, needs IFSCA's prior approval.

  
  

• Tax conditions: The IFSC tax holiday covers qualifying income only, and minimum alternate tax may still apply. Model the effective rate, not the headline exemption.

If you are weighing GIFT IFSC against a domestic setup for other finance functions, our comparison of GIFT City IFSC vs mainland India may help.

How GIFT CFO Helps Groups Set Up GIFT City Treasury Operations

A treasury centre sits where regulation, tax, foreign exchange and group finance meet. Getting the design right before you apply saves time and rework later.

GIFT CFO's Business in GIFT City advisory supports groups through the setup. Relevant areas include:

• Business registration in GIFT IFSC: Structuring and registering the treasury entity or branch.

• SEZ and IFSCA compliance: Navigating the Letter of Approval, registration and ongoing obligations.

• Financial modelling and valuation: Building the business case and projections for the centre.

• FEMA, AML/KYC and secretarial compliance: Aligning cross-border group flows with the applicable rules.

• ODI and FPI investment compliance: Supporting Indian groups with overseas investment requirements.

• Accounting and bookkeeping: Maintaining the centre's records in foreign currency.

The aim is a treasury centre that is designed around your group's real cash flows and can stand up to regulatory review.

Build a Stronger Group Treasury From GIFT City

GIFT City treasury services give global and Indian groups a regulated way to centralise funding, liquidity, investment and risk management in one foreign-currency hub.

The framework is broad, but the benefits depend on design: which entities the centre serves, how cash will flow, how FEMA and transfer pricing apply, and whether the group can staff a genuine operation in the IFSC.