A YES Bank GIFT City IBU Account is a foreign currency bank account that allows you to:
✅ Keep money in USD or other foreign currencies
✅ Earn interest on foreign currency deposits
✅ Send and receive international payments easily
✅ Invest in global financial products
✅ Take foreign currency loans
It works differently from a normal savings account because it is meant for international banking purposes.
Key Features and Benefits
- Foreign Currency Deposits
You can hold money in USD, EUR, GBP and other currencies without converting to Indian Rupees. - Better Interest Rates
Foreign currency fixed deposits in GIFT City often provide higher returns compared to overseas banks. - Easy Repatriation
Funds can be transferred abroad easily without many restrictions. - Tax Efficiency
Certain incomes may get tax benefits depending on your residential status. - Global Investment Access
You can invest internationally from India through GIFT City platforms.
Minimum Balance Requirement
Minimum balance depends on the customer profile.
Individuals / NRIs
Usually around USD 10,000 to USD 25,000 or more.
Corporates
Typically USD 100,000 or higher depending on business needs.
The bank decides the requirement based on relationship value.
Interest Rates (Indicative)
Foreign currency deposit rates change regularly, but approximate ranges are:
USD deposits: 4% to 6.5% per year
EUR / GBP deposits: Slightly lower
Tenure: 7 days to 5 years
Who Should Open This Account?
This account is suitable for:
✅ NRIs earning in foreign currency
✅ Doctors or professionals working abroad
✅ Business owners doing import/export
✅ Investors wanting USD deposits
✅ High net worth individuals
It may not be suitable for people who only need a normal savings account or have small balances.
Example: Dr. Devajit Deka (NRI from Canada)
Let’s understand with a simple example.
Dr. Devajit Deka is an Indian doctor working in Canada. He earns in Canadian dollars and wants to keep part of his savings in USD for investment purposes.
Instead of keeping money in a foreign bank with low interest, he opens a YES Bank GIFT City IBU account.
Benefits he gets:
Keeps money in foreign currency
Earns better interest on USD deposits
Can transfer funds to India or abroad easily
Gets potential tax advantages as an NRI
This makes international money management easier for him.
How to Open YES Bank GIFT City IBU Account
The process is relationship-based and slightly different from normal accounts.
Step-by-Step Process
Contact YES Bank branch or Relationship Manager
Discuss purpose and currency requirement
Submit documents and KYC forms
Transfer initial funding in foreign currency
Account gets activated after verification
The process usually takes a few working days after documentation.
Documents Required
For Individuals / NRIs
PAN Card (if applicable)
Passport (mandatory)
Address Proof
Identity Proof
Photographs
FATCA / Tax declaration
Overseas address proof (for NRIs)
Visa / OCI (if applicable)
For Businesses
Company incorporation certificate
Board resolution
KYC of directors
Financial statements
Beneficial ownership declaration
Tax Benefits in India
One of the biggest attractions of GIFT City accounts is tax efficiency.
Interest Income Benefits
For NRIs, interest earned may be tax-efficient or exempt in India in certain situations.
No TDS in Some Cases
Banks may not deduct TDS on eligible foreign currency deposits.
Investment Tax Benefits
Investments through GIFT City platforms may enjoy:
Lower or zero capital gains tax in some cases
No securities transaction tax (STT)
Business Tax Benefits
Companies operating from GIFT City can get income tax exemptions for specific periods under government rules.
⚠️ Tax rules depend on residential status, so professional advice is recommended.
Important Risks and Points to Know
Before opening, understand these points:
Deposits are usually not covered under Indian deposit insurance (DICGC)
Currency exchange risk may impact returns
Higher minimum balance requirement
Mostly designed for HNI, NRI, and businesses
Difference Between Normal Account and GIFT City Account
Normal Savings Account
GIFT City IBU Account
Currency: INR
Foreign Currency
Purpose: Daily banking
International banking
Insurance: Available
Usually not available
Minimum Balance: Low
High
Target Users: General public
NRIs / HNI / Businesses
Final Conclusion
A YES Bank GIFT City IBU account is a powerful option for people who deal with foreign currency and want international banking advantages while staying connected to India.
It is especially useful for NRIs like Dr. Devajit Deka who want better returns, flexibility, and global financial access.
FAQs
Is GIFT City account safe?
Yes, it is regulated, but deposit insurance coverage may not apply like normal accounts.
Can resident Indians open it?
Yes, under certain rules such as foreign remittance regulations.
What currency can be held?
USD, EUR, GBP and other major global currencies.
Is minimum balance high?
Yes, compared to normal savings accounts.
