Global/Regional Treasury Centre in GIFT City – GTC & RTC

Last Updated on: 7th October 2025, 03:52 pm

Introduction: Why GIFT City is Becoming a Treasury Hub

GIFT IFSC – India’s International Financial Hub

The Gujarat International Finance Tec-City (GIFT City) was launched as India’s first International Financial Services Centre (IFSC) to attract global capital and consolidate offshore activities back into India. It operates as a greenfield smart city spread across 886 acres, divided into a Special Economic Zone (SEZ) and Domestic Tariff Area (DTA). The IFSC is regulated by the International Financial Services Centres Authority (IFSCA), which consolidates powers of RBI, SEBI, IRDAI, and PFRDA to provide a single-window unified regulator.

Key highlights of GIFT IFSC include:

• 930+ entities registered, including global banks, insurers, and capital market players (as of June 2025).
• USD 93 billion+ total banking asset size.
• Tax benefits: 100% exemption for 10 out of 15 years, no GST on offshore transactions, 10% dividend tax for non-residents.
• Global-standard infrastructure: automated cooling and waste systems, underground utility tunnels, walk-to-work ecosystem.

Treasury Centres in GIFT City

Treasury Centres in GIFT City, operating within India’s International Financial Services Centre (IFSC), are specialized financial units, classified as either Global Treasury Centres (GTCs) or Regional Treasury Centres (RTCs) that function as the in-house bank for multinational corporations. Governed by the International Financial Services Centres Authority (IFSCA), their primary purpose is to centralize and manage the financial operations for a corporation’s global or regional group entities, focusing on key activities like multi-currency liquidity and cash management, foreign exchange and interest rate risk hedging, and facilitating intra-group financing. 

A Global Treasury Centre (GTC) functions as the “in-house bank” for a multinational group, centralizing worldwide financial management to achieve greater efficiency and control. Its core purpose is to manage global finances, encompassing essential functions such as liquidity and cash pooling across all subsidiaries, comprehensive risk management (covering FX, interest rate, and commodity exposures), intra-group financing, and overall capital allocation and fundraising (including bonds and external borrowings). 

A Regional Treasury Centre (RTC), in contrast, acts as the treasury hub for a specific geographic area, such as Asia-Pacific or the Middle East. While a GTC handles global financial flows, an RTC focuses on addressing the cross-border treasury needs of subsidiaries within its defined region. Its functions mirror those of a GTC but on a regional scale: providing liquidity support, FX hedging, and risk management tailored to the regional markets. Essentially, the RTC serves as a crucial intermediary, bridging the gap between local operations and the global headquarters by ensuring that regional treasury functions are aligned with both the group’s overall strategy and the dynamics of local regulations and markets.

Why MNCs are Consolidating Treasury Operations

Global companies increasingly prefer centralized treasury centres for efficiency, compliance, and cost control:

• Operational efficiency: Central hubs reduce duplication of treasury functions across countries.
• Lower costs: GIFT City offers cost advantages vs hubs like Singapore or Dubai.
• Regulatory ease: One unified regulator (IFSCA) simplifies cross-border approvals.
• Tax savings: GTC/RTC in GIFT IFSC can benefit from tax neutrality on interest, dividend, and capital gains.
• Technology adoption: Treasury Management Systems (TMS), multi-currency pooling, and AI-driven risk analytics enhance real-time cash visibility.

Stat Snapshot – Why Treasury is Centralizing in GIFT City

Factor	GIFT IFSC Advantage
Banking Assets	USD 93 bn+ (June 2025)
Entities Registered	930+ (June 2025)
Tax Incentive	100% exemption (10/15 yrs)
Dividend Tax	10% for non-residents
Regulator	Unified IFSCA

What is a Global Treasury Centre (GTC)?

A Global Treasury Centre (GTC) is the nerve centre of financial operations for multinational corporations (MNCs). It acts as an in-house bank for the group, consolidating financial decision-making, ensuring efficient use of capital, and enabling greater control over risks and liquidity across multiple geographies.

Core Functions of a Global Treasury Centre

A GTC typically undertakes the following critical activities:

• Cash & Liquidity Management
  • Centralized pooling of cash across global subsidiaries.
  • Optimization through notional pooling or physical cash concentration.
  • Ensures funds are available where required, reducing idle balances.
    
• Risk Management
  • Foreign exchange (FX) hedging to manage currency exposures.
  • Interest rate risk mitigation through swaps, futures, and options.
  • Commodity price hedging for corporates dealing with raw materials (e.g., oil, metals).
    
• In-House Banking
  • Acting as a bank for group entities: providing intercompany loans, deposits, and settlements.
  • Enabling netting of intra-group transactions, lowering transaction costs.
  • Managing centralized payment and collection systems (“payment factory” model).
    
• Funding and Capital Allocation
  • Raising debt or equity globally at competitive rates.
  • Allocating capital efficiently across subsidiaries.
  • Supporting external borrowings, ECBs, and bond issuances from one hub.
    

Why Companies Consolidate Treasury at Global Hubs

MNCs prefer to operate global treasury hubs for efficiency, compliance, and cost benefits:

• Operational Efficiency
  • Eliminates duplication of treasury functions across subsidiaries.
  • One centralized platform streamlines approvals and controls.
• Lower Costs
  • Reduced number of external banking relationships.
  • Transaction cost savings via internal netting and pooling.
• Regulatory & Compliance Ease
  • Global hubs like GIFT City, Singapore, and Dublin offer clear frameworks for treasury activities.
  • Easier to comply with OECD’s BEPS rules and global minimum tax requirements when managed from a central hub.
• Tax Benefits
  • Locations such as GIFT City provide 100% tax exemptions for 10 consecutive years out of 15, tax-neutral interest, and lower dividend tax on payouts to non-residents.
• Technology & Real-Time Visibility
  • Use of Treasury Management Systems (TMS) for real-time global cash visibility.
  • AI/ML tools for predictive analytics in FX and liquidity management.

Global Examples of Treasury Hubs

Several established international hubs showcase the importance of GTCs:

• Singapore – Asia’s largest FX trading centre, third globally after London and New York; key hub for MNC treasury operations.
• Dublin (Ireland) – Favoured in Europe for tax treaties, access to EU markets, and robust regulatory frameworks.
• Hong Kong – Long-standing treasury hub for North Asia with free capital movement and proximity to China.
  

What is a Regional Treasury Centre (RTC)?

A Regional Treasury Centre (RTC) is a treasury hub that manages financial operations within a defined geographic region for example, Asia-Pacific, the Middle East, or Africa. Unlike a Global Treasury Centre (GTC), which oversees worldwide operations, an RTC focuses on regional subsidiaries, ensuring that local business needs are met while still aligning with the company’s global financial strategy.

RTC vs GTC: Key Differences

Comparing Regional Treasury Centre (RTC) and Global Treasury Centre (GTC)

Feature	Regional Treasury Centre (RTC)	Global Treasury Centre (GTC)
Scope	Limited to a region (e.g., Asia, MEA)	Covers all global subsidiaries
Focus	Regional liquidity, FX risk, local compliance	Global capital allocation, worldwide liquidity & risk
Decision-making	Semi-centralized – aligns with global HQ but adapts to regional needs	Fully centralized – decisions flow from one global hub
Best for	Companies with strong presence in a particular region needing closer oversight	Companies aiming for complete centralization and efficiency

How RTCs Serve Asia, Middle East, and Africa

RTCs are increasingly popular in emerging and frontier markets where business expansion is rapid but regulatory, FX, and banking environments vary by country.

• Asia-Pacific (APAC):
  • Supports subsidiaries in India, Southeast Asia, and China.
  • Provides FX hedging for volatile currencies and ensures liquidity across high-growth but fragmented markets.
    
• Middle East (ME):
  • Manages funding and payments for oil & gas, infrastructure, and energy companies.
  • Deals with currencies pegged to USD and regional banking regulations.
    
• Africa:
  • Helps manage capital repatriation restrictions.
  • Ensures availability of funds for operations in multiple currencies (e.g., ZAR, NGN, KES).

GIFT IFSC, strategically located in India, is increasingly positioned as a regional treasury hub for Asia, Middle East, and Africa, offering multi-currency pooling, zero-interest withholding tax, and tax holidays on treasury income.

Role in Bridging Global Operations with Regional Subsidiaries

RTCs play a critical bridge function between headquarters and local entities:

• Alignment with global treasury policies while adapting to regional regulations.
• Real-time liquidity management for subsidiaries across time zones.
• Consolidated reporting for regional entities before submission to global HQ.
• Support for local financing (e.g., trade finance, supply chain financing).
• Risk monitoring for region-specific exposures (political, currency, and commodity risks).

This layered structure ensures both control at the centre and agility in the region, making RTCs essential for companies with diverse regional operations.

When Do Companies Choose RTC Instead of GTC?

Companies often opt for a Regional Treasury Centre instead of a Global Treasury Centre in the following situations:

• Strong regional presence – Businesses with large revenues in Asia or Africa often need localized treasury oversight.
• Regulatory barriers – When certain jurisdictions restrict full centralization of treasury, RTCs offer a compliant alternative.
• Currency complexity – Emerging markets with volatile or restricted currencies require on-ground management.
• Stepping stone to global centralization – Many MNCs start with RTCs before consolidating into a GTC.
• Sector-specific needs – Industries like oil & gas, manufacturing, and IT services often use RTCs to optimize working capital in growth-heavy regions.
  

Why GIFT City for Global/Regional Treasury Centres?

India’s Regulatory Push – Unified Oversight for Treasury Centres

The Government of India, through the Ministry of Finance (MoF), the Reserve Bank of India (RBI), and most importantly the International Financial Services Centres Authority (IFSCA), has actively positioned GIFT IFSC as a preferred hub for Global Treasury Centres (GTCs) and Regional Treasury Centres (RTCs).

• IFSCA (Finance Company) Regulations, 2021: First set of rules enabling finance companies/units in GIFT City to perform treasury activities.
• GRCTC Framework (June 2021): Allowed Finance Companies and Finance Units to act as GTCs/RTCs, providing intra-group financing, cash pooling, risk management, and capital allocation services.
• 2023–25 updates: Introduced relaxations on prudential norms, clarity on re-invoicing activities, multi-currency pooling, OTC derivative participation, and acting as a holding company.

This regulatory clarity gives corporates the confidence to centralize treasury in India, similar to how Singapore and Dublin built their ecosystems.

Tax Benefits in GIFT IFSC

GIFT City offers one of the most competitive tax regimes globally for treasury centres:

• 100% Income Tax Exemption for 10 consecutive years out of 15 for IFSC units.
• No GST on services rendered to offshore clients, IFSC/SEZ units.
• Interest Income: Tax-exempt when paid to non-residents.
• Dividend Distribution: Reduced tax at 10% for non-residents.
• Stamp Duty & Capital Gains Relief: Lower transaction costs compared to onshore India.
• MAT/AMT: 9% on book profits (waived in case of company opting for concessional tax regime).

Strategic Location – Gateway to Asia, Middle East, and Africa

• Time Zone Advantage: Conveniently overlaps with Asia, Middle East, and European working hours.
• Regional Coverage: MNCs can use GIFT City as a base for treasury operations spanning APAC, MENA, and Africa.
• India’s Growth Story: With GDP at USD 3.94 trillion (FY24) and projected to cross USD 5 trillion by FY28, treasury centres in GIFT City benefit from proximity to one of the world’s fastest-growing economies.
• Talent Pool: India’s cost-effective and skilled finance, legal, and technology professionals strengthen GIFT IFSC’s competitiveness vs Singapore and Dubai.
  

Key Benefits of GTC/RTC in GIFT City vs Other Global Hubs

Factor	GIFT City (India)	Singapore	Dubai	Hong Kong
Tax Regime	100% exemption for 10/15 yrs; 10% dividend tax; interest income exempt	17% corporate tax (effective Jan 2025); no WHT on dividends	0% corporate tax (non-oil sectors), 5% VAT	16.5% corporate tax; no WHT on dividends
FX Regulations	Full convertibility in 15 currencies; INR not permitted	Free capital convertibility	Free capital convertibility	Free capital convertibility
Cost of Operations	Lower office, compliance & workforce costs	High – among world’s costliest cities	Moderate; attractive incentives but rising costs	High – real estate & wage inflation
Capital Markets Access	Direct access to India’s $3.94T economy and growing debt & equity markets	Strong ASEAN market access	Middle East + Africa; limited Asia linkages	Access to China + global FX hub

Why Corporates Prefer GIFT IFSC for Treasury Centres

• Regulatory clarity & global-standard compliance under IFSCA.
• Highly competitive tax regime driving cost savings.
• Proximity to India’s economy and regional trade flows.
• Cost arbitrage in workforce and infrastructure vs Singapore & Dubai.
• Government vision to make GIFT IFSC the “Global Nerve Centre of Financial Services” by 2047.

Treasury Activities Allowed in GIFT IFSC

The International Financial Services Centre (IFSC) at GIFT City allows multinational corporations to establish Global Treasury Centres (GTCs) and Regional Treasury Centres (RTCs) with a wide spectrum of treasury activities. These are enabled under the IFSCA (Finance Company) Regulations, 2021 and the Framework for Global/Regional Corporate Treasury Centres issued in June 2021. Here are activities what a GRCTC can do.

Centralized Cash Pooling & Liquidity Management

• Physical pooling: Sweeping funds from subsidiaries into a central account.
• Notional pooling: Virtual consolidation of balances in multiple currencies without physical transfers.
• Multi-currency cash pools allowed in GIFT City reduce FX conversion costs and optimize liquidity.
• Enables working capital efficiency across Asia, Middle East, and Africa.

FX Risk Hedging & Derivatives

• Access to OTC derivatives and exchange-traded contracts.
• Permitted instruments: forwards, swaps, options, cross-currency derivatives.
• Corporates can hedge currency, interest rate, and commodity price risks.
• Regulatory updates (2023–25) allow greater participation in multi-leg derivative contracts.

Investment of Surplus Funds

• Surplus funds can be invested in:
  • Government securities
  • Corporate bonds
  • Money market instruments
• IFSCA permits foreign currency denominated investments, enabling higher yield vs local markets.
• Facilitates global liquidity optimization and better return on idle funds.
  

Fundraising – Loans, Bonds & ECBs

• Treasury centres in GIFT City can raise funds through:
  • External Commercial Borrowings (ECBs)
  • Bond issuances including green bonds and ESG-linked securities
  • Syndicated loans and structured finance
• Advantage: Lower withholding tax and easier access to India’s growing debt capital markets.

Intercompany Lending

• RTCs and GTCs can provide intra-group loans across jurisdictions.
• Supports subsidiaries in managing liquidity gaps without relying on external borrowing.
• Loans structured with flexibility on maturity, currency, and interest rates.
• Helps reduce overall cost of capital for multinational groups.

In-House Banking Services

• Treasury centres act as an “internal bank” for group entities.
• Services include:
  • Payment factory (centralized payment processing).
  • Re-invoicing models to reduce FX exposure.
  • Netting services to offset receivables and payables within the group.
• Streamlines operations and reduces dependency on multiple external banks.

Functional Structure of GIFT Treasury

Role of Technology in Corporate Treasury Services

• Digital Treasury Platforms enable 24/7 global visibility of liquidity and payments.
• AI/ML Risk Analytics help forecast FX exposure and liquidity shortages with higher accuracy.
• Automation reduces human error in intercompany transactions and derivatives execution.
• Blockchain & APIs enable instant settlements and faster reconciliation across multiple jurisdictions.

Integration with India’s Domestic and Cross-Border Capital Flows

• GIFT IFSC allows direct access to India’s growing equity, debt, and derivatives markets, providing corporates with funding options not available in other hubs.
• Seamless integration with onshore India entities ensures smoother ECB approvals, trade finance, and capital repatriation.
• Corporates can manage cross-border flows to Asia, Middle East, and Africa through a single treasury hub in India.

Setting Up a Treasury in GIFT IFSC (GRCTC): Complete Step-by-Step Guide

Thinking of centralizing group cash, FX, and intercompany funding in GIFT City IFSC? Under IFSCA’s framework you can establish a Global/Regional Corporate Treasury Centre (GRCTC) either as an IFSC-incorporated company or as a Finance Unit (branch) of an Indian/overseas parent.

The Compliant Order: Register First, Operate Next

Yes registration comes first. You must secure:

1. GIFT-SEZ Unit Approval (Letter of Approval, “LOA”)
2. IFSCA registration as a Finance Company/Finance Unit for GRCTC, filed on the SWIT portal

Only after these are granted should you operationalize banking rails, FX/derivatives, and intercompany transactions.

Step-by-Step Process

Step 1: Define your GRCTC model

• Decide legal form: IFSC company or Finance Unit (branch) of the parent
• Scope the service recipients (group entities/branches in India and overseas)
• Map activity set: FX and derivatives, intercompany funding, re-invoicing, liquidity pools, investments
• Draft a concise business plan (use-cases, balance sheet size, risk appetite, systems)

Step 2: Secure space & prepare for SEZ application

• Identify office space in GIFT-SEZ (lease/LoI)
• Prepare entity KYC, ownership structure, brief project report, and utility requirements
• Target outcome: SEZ LOA (this also unlocks the next step with the regulator)

Step 3: File IFSCA application for GRCTC on SWIT

• Create account on SWIT (Single Window IT) and fill the GRCTC application
• Attach: business plan, ownership/capital details, Service Recipients list, draft policies (governance, risk, AML/CFT/KYC, activity & limits), and org chart
• Choose Finance Company (IFSC-incorporated) or Finance Unit (branch of Indian/foreign parent)

Step 4: Meet entry conditions (prepare in parallel)

• Owned funds: at least USD 0.2 million (can be maintained at parent level for a branch)
• People: plan for 5 on-ground personnel in IFSC including Head of Treasury and Compliance Officer (check if any onboarding relaxations/transition windows apply)
• Infrastructure: dealing systems, market access, record-keeping, info-security, and connectivity

Step 5: Respond to queries & obtain registration

• Address clarifications from IFSCA swiftly; you may receive a provisional nod before the final Certificate of Registration
• Keep your Service Recipients list current; you may be asked to provide updates

Step 6: Operationalize banking & currency rails

• Open operating accounts with IFSC banks/IFSC branches in permitted foreign currencies
• For India-side transactions outside IFSC, open a Special Non-Resident Rupee (SNRR) account with an AD Category-I bank in India
• Integrate treasury systems for trade capture, confirmations, settlements, and reporting

Step 7: Finalize policies, limits & controls

• Get Board-approved policies: Corporate Governance, Risk Management, Activity/Dealing Limits, AML/CFT/KYC, Outsourcing, BCP/DR
• Set up three lines of defence (front office, risk/compliance, internal audit) and reporting lines to the Board/Committee
• Put in place counterparty limits, VaR/sensitivity checks (as relevant), and MIS for daily/weekly reporting

Step 8: Go-live & ongoing obligations

• Commence operations within 6 months of the Certificate of Registration (apply for extension with reasons if needed)
• Maintain minimum capital, on-ground staffing, robust records, and timely regulatory returns
• Keep your Service Recipients and activity set aligned with the registration; seek approvals for any material changes

Practical Timeline (indicative)

• Weeks 1–3 (Pre-filing): model, entity/branch decision, office space, draft policies, staffing plan
• Weeks 4–10 (SEZ + IFSCA filing): obtain SEZ LOA; submit IFSCA GRCTC application on SWIT; handle clarifications
• Weeks 8–14 (Operationalization): finalize policies, hire/second staff, open IFSC accounts & SNRR, test systems and controls
• Go-Live (by Month 3–4) depending on completeness and responsiveness

Key Advantages of Setting up a Treasury Centre in GIFT City

Regulatory Clarity under IFSCA

• Unified regulator (IFSCA) consolidates powers of RBI, SEBI, IRDAI, and PFRDA.
• Simplified compliance framework compared to multiple regulators in onshore India.

Tax Neutrality & Exemptions

• 100% income tax exemption for 10 consecutive years out of 15.
• No GST on services provided to offshore clients or other IFSC units.
• Interest income tax-free, dividends taxed at 10% for non-residents.

Cost Arbitrage vs Singapore & Dubai

• 30–40% lower operating costs (real estate, compliance, and workforce).
• Access to world-class infrastructure with lower set-up costs compared to Hong Kong and Singapore.

Talent Availability – Skilled Finance & Treasury Professionals

• India produces over 2.5 million commerce and finance graduates annually, ensuring a robust talent pipeline.
• GIFT IFSC attracts chartered accountants, CFA charterholders, and risk professionals at costs lower than global hubs.
  

Proximity to Indian Markets – USD 5 Trillion Economy by 2030

• India’s GDP projected to cross USD 5 trillion by FY30, making it one of the largest demand centres for global corporates.
• GIFT IFSC treasury hubs provide direct access to this growth story while also serving Asia, Middle East, and Africa.
  

Industry Use Cases & Case Studies

The adoption of Global Treasury Centres (GTCs) in GIFT IFSC and Regional Treasury Centres (RTCs) in GIFT IFSC is gaining momentum across industries. Multinational corporations (MNCs) are recognizing the regulatory clarity, tax benefits, and cost advantages of setting up treasury hubs in India. Below are sector-specific use cases and case studies that demonstrate how different industries leverage corporate treasury services in GIFT City.

IT & ITES – Leveraging GIFT IFSC for Global Cash Flow Efficiency

India’s IT and IT-enabled services (ITES) sector contributes ~7.5% of GDP and generates over USD 250 billion in annual revenues (FY24), much of which comes from exports. This sector faces challenges in multi-currency inflows, FX volatility, and working capital deployment.

Use Case:

• Centralized treasury at GIFT IFSC manages multi-currency cash pooling from clients across the US, EU, and Asia.
• FX hedging through permitted derivatives mitigates risks from USD/INR volatility.
• Idle cash is deployed into foreign currency bonds and money market instruments, optimizing returns.

Example: Large IT service providers are exploring RTCs in GIFT City to consolidate export receivables and fund overseas subsidiaries, reducing reliance on multiple offshore hubs like Singapore and Dublin.

Pharma & Life Sciences – Managing Global Supply Chains

India is the world’s third-largest producer of pharmaceuticals by volume, exporting to 200+ countries. Pharma companies deal with complex supply chains, regulatory approvals, and high R&D investments, making treasury centralization critical.

Use Case:

• In-house banking from GIFT IFSC supports intercompany loans for subsidiaries managing R&D and global distribution.
• Treasury hubs issue External Commercial Borrowings (ECBs) to finance expansion into regulated markets like the US and EU.
• Risk analytics platforms in GIFT City help forecast commodity and FX exposure for active pharmaceutical ingredients (APIs).

Example: Mid-to-large Indian pharma players are actively evaluating GIFT IFSC as an alternative to their current Singapore treasury setups, driven by 10-year tax holidays and reduced dividend withholding tax at 10%

Manufacturing & Industrial – Financing Global Expansion

India’s manufacturing sector, supported by the Make in India initiative, is expected to reach USD 1 trillion by 2030. Global manufacturing firms operating in India face challenges in capital allocation, raw material price hedging, and cross-border liquidity.

Use Case:

• GTCs in GIFT City act as “funding hubs”, raising capital through bond issuances and syndicated loans.
• Commodity hedging via derivatives protects against volatility in steel, crude oil, and metals.
• Centralized payment factories streamline vendor and supplier payments across multiple jurisdictions.

Example: A large multinational automotive group is assessing GIFT City for its regional treasury centre for South Asia, aiming to reduce treasury costs by 30–40% compared to Singapore, while gaining direct access to India’s fast-growing debt and equity markets.

Industry-Wise Benefits of GTC/RTC in GIFT IFSC

Industry	Treasury Need	GIFT City Advantage
IT/ITES	FX risk, idle cash deployment, export receivables	Multi-currency pooling, AI-driven risk analytics, tax-free surplus investments
Pharma	R&D funding, API supply chain risks, ECB financing	In-house banking, derivative access, 100% tax holiday on treasury income
Manufacturing	Capital allocation, commodity hedging, supplier payments	Bond/ECB fundraising, centralized payments, lower costs vs Singapore/Dubai

Challenges & Considerations for GTC/RTC in GIFT City

While GIFT IFSC offers unmatched benefits for setting up a Global Treasury Centre (GTC) or Regional Treasury Centre (RTC), corporates must also evaluate the practical challenges before transitioning operations.

Need for Operational Readiness

• Companies require robust governance structures to centralize treasury activities without disrupting local operations.
• Standardization of intercompany loan agreements, treasury policies, and reporting formats is essential.
• A phased migration strategy helps avoid compliance risks and liquidity mismatches during setup.

Regulatory Compliance (FEMA, Companies Act, IFSCA)

• FEMA (Foreign Exchange Management Act): Treasury centres must align intra-group loans and FX transactions with FEMA guidelines.
• Companies Act, 2013: Reporting obligations such as board approvals, filings, and related-party disclosures remain relevant for Indian subsidiaries.
• IFSCA Regulations: While GIFT IFSC provides liberalized norms, entities must comply with prudential exposure limits, derivative guidelines, and disclosure requirements.
• Global corporates must also ensure compliance with OECD BEPS and global minimum tax frameworks, which affect treasury structuring.

Technology Infrastructure

• A successful GTC/RTC depends on Treasury Management Systems (TMS) integrated with global ERPs.
• Key requirements include:
  • Real-time visibility of global cash balances.
  • Automated FX and derivatives execution.
  • Blockchain/APIs for faster reconciliation.
• MNCs must invest in cybersecurity protocols as treasury hubs are high-value targets for cyberattacks.

Skilled Manpower Training

• While India offers a large pool of finance professionals, specialized treasury skillsets (cash pooling, derivatives pricing, global compliance) are still developing.
• Corporates setting up GTC/RTC in GIFT IFSC should:
  • Invest in treasury certification programs (ACT, CFA, FRM).
  • Upskill employees in AI/ML-driven risk analytics.
  • Build teams capable of 24/7 liquidity monitoring across time zones.

Future of GTC & RTC in GIFT IFSC

India as an Alternative to Singapore & Dubai

• With lower operating costs and tax-neutral structures, GIFT City is emerging as a cost-effective alternative to established hubs like Singapore and Dubai.
• By 2025, India aims to position GIFT IFSC as the preferred treasury centre for Asia, Middle East, and Africa, capitalizing on India’s trade linkages with these regions.

IFSCA Roadmap for 2030 – Treasury Flow Growth

• IFSCA projects treasury flows of USD 50+ billion by 2030 through GTCs and RTCs in GIFT IFSC.
• Key growth drivers:
  • Expansion of multi-currency cash pooling.
  • Increased bond issuances and ECBs.
  • Adoption of green and ESG-linked financing.

Role in India’s Financial Globalization Strategy

• GIFT IFSC supports India’s vision of becoming a global financial powerhouse by 2047.
• By encouraging treasury centralization, GIFT City:
  • Attracts foreign MNCs to manage Asia operations from India.
  • Strengthens capital market depth through bond/FX activity.
  • Enhances India’s role in cross-border trade and financial flows.
• With 580+ entities already registered and banking assets exceeding USD 52 billion (Dec 2023), treasury centres are expected to be a key pillar of India’s global financial integration.

GIFT IFSC is rapidly transforming into a preferred hub for Global and Regional Treasury Centres (GTCs & RTCs) by offering a powerful combination of regulatory clarity under IFSCA, competitive tax incentives, world-class infrastructure, and cost advantages over hubs like Singapore and Dubai. With treasury activities such as cash pooling, FX hedging, in-house banking, intercompany lending, and bond issuances now permitted, MNCs across IT/ITES, pharma, and manufacturing are leveraging GIFT City for operational efficiency and cross-border liquidity management. Backed by India’s projected USD 5 trillion economy by 2030 and IFSCA’s roadmap targeting USD 50+ billion in treasury flows by 2030, GIFT City is positioning itself as a cornerstone of India’s financial globalization strategy, enabling corporates to centralize treasury operations while unlocking new opportunities across Asia, the Middle East, and Africa.