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All NRIs

GIFT City for NRIs

Dollar accounts, funds with no TDS and dollar insurance: what is open to individual NRIs, and whether it is worth it.

Illustration of an individual saver weighing foreign-currency opportunities against the risks of GIFT City

NRIWallah team

Updated September 2026 · 2 min read

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GIFT City is marketed to NRIs as dollar bank accounts, funds with no TDS on redemption, dollar insurance policies and an exchange trading Indian index futures outside Indian market hours, all without converting to rupees. Most of that is accurate. The question is whether it suits someone saving from a salary in London or Dubai, or mainly institutions.

What is open to individuals

  • Bank deposits. Banking units in GIFT City offer NRIs foreign-currency savings and term deposits, and video KYC has shortened account opening.
  • Funds. A small number of fund houses run GIFT City funds with low minimums, some in the hundreds or low thousands of dollars.
  • Insurance. Several Indian insurers sell dollar term and savings policies to NRIs through GIFT City offices.

What is still built for institutions

Most money in GIFT City funds sits in alternative investment funds (AIFs) and portfolio management services (PMS). Their minimums start at tens of thousands of dollars, many carry lock-ins of around three years, and most are not listed, so even those open to individuals are far less liquid than an onshore mutual fund. Institutions, family offices and company treasuries account for most of the money invested so far; retail schemes remain small.

Getting access

You cannot reach GIFT City products through a normal NRI account. You need a separate account with an IFSC-licensed unit, with its own KYC, on top of your NRE and NRO accounts. GIFT City deposits are also not covered by deposit insurance, unlike an onshore FCNR deposit.

Is it worth it?

If your Indian investing is modest, a mutual fund SIP, an FD and regular transfers home, GIFT City adds a second account and more paperwork for benefits that matter mainly when sums are large enough for TDS and conversion costs to add up. If you have substantial savings and want dollar-denominated Indian investments, it may be worth comparing, starting with the products that have low minimums. In either case, remember that the Indian tax exemption does not carry over to the country where you live.

NRIWallah does not provide financial advice. Product minimums and rules change as IFSCA revises its regulations; confirm current terms with the provider before investing.

Common questions

Gujarat International Finance Tec-City, near Gandhinagar, is India’s international financial services centre. It is treated as outside India for exchange-control purposes, business is done in foreign currency, and a single regulator, the International Financial Services Centres Authority (IFSCA), takes the place of SEBI, the RBI and IRDAI inside the zone.
In India, largely yes for NRIs: interest on deposits with GIFT City banking units and gains on units of qualifying IFSC funds are generally exempt, and there is no TDS on redemption. That exemption is Indian only. The country you live in taxes the income under its own rules, like any other foreign income.
Not through a standard NRE or NRO demat account. You need a separate account with an IFSC-licensed unit; several large Indian brokers run one alongside their NRI business. It is a separate sign-up with its own KYC.
No. Unlike onshore NRE, NRO and FCNR deposits, which DICGC insures up to ₹5 lakh per depositor per bank, GIFT City deposits have no deposit insurance, even with a bank you also use onshore. Weigh that against the tax and currency advantages before moving a large sum.

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