Indian Overseas Bank has received regulatory approval from the Reserve Bank of India to establish an International Financial Services Centre Banking Unit (IBU) at Gujarat International Finance Tec-City (GIFT City). This development marks a significant step forward for the public sector bank in expanding its international financial services capabilities and overseas operations.

Regulatory Approval Details

The Reserve Bank of India has granted permission to Indian Overseas Bank to set up the specialized banking unit within the IFSC framework at GIFT City. This approval allows the bank to operate under the specific regulatory guidelines established for International Financial Services Centre Banking Units.

GIFT City Operations

The establishment of the IBU at GIFT City will enable Indian Overseas Bank to offer specialized banking services designed for international clients and cross-border financial transactions. GIFT City serves as India's premier international financial services hub, providing a conducive environment for global financial operations within a special economic zone framework.

Strategic Expansion

This regulatory approval represents an important milestone in Indian Overseas Bank's strategic expansion into international financial services. The IFSC Banking Unit will position the bank to participate more actively in global financial markets and serve international clients through the specialized infrastructure available at GIFT City.

The approval enables Indian Overseas Bank to leverage the regulatory advantages and infrastructure facilities available within the IFSC framework, supporting the bank's objectives to enhance its presence in international banking services.

Indian Overseas Bank has received official approval from the Reserve Bank of India (RBI) to establish an International Financial Services Centre (IFSC) banking unit in Gujarat International Finance Tec-City (GIFT City). The regulatory clearance was communicated through an official RBI letter dated December 29, 2025, marking a significant development for the public sector bank as it expands its footprint in India's premier international financial hub.

Official RBI Approval Details

The bank received formal permission through an RBI letter dated December 29, 2025. Indian Overseas Bank has notified stock exchanges BSE and NSE about this development through a regulatory filing under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations. The communication was issued from the bank's central office and signed by Ram Mohan K, Compliance Officer of Indian Overseas Bank.

Strategic Expansion into GIFT City

The approval allows Indian Overseas Bank to set up specialized banking operations within the IFSC framework at GIFT City. This move positions the bank to capitalize on the growing opportunities in international financial services and enhances its ability to serve global clients from India's financial gateway. The bank requested both exchanges to take the information on record and make it available on their respective websites.

IFSC Banking Unit Benefits

The establishment of an IFSC banking unit will enable Indian Overseas Bank to offer international banking services under the IFSC regulatory framework, serve multinational corporations and international clients, access global financial markets more effectively, and expand revenue streams through specialized financial products. The setting up of this unit will enable the bank to expand its presence in international financial services within the regulatory framework of the IFSC.

Regulatory Milestone

The RBI approval represents a crucial regulatory milestone for Indian Overseas Bank's expansion strategy. GIFT City serves as India's first operational smart city and international financial services centre, providing a conducive environment for banks to offer world-class financial services to domestic and international clients. This development aligns with the government's vision of establishing India as a global financial hub and demonstrates Indian Overseas Bank's commitment to participating in the country's evolving financial services landscape.