IDFC FIRST Bank has announced the launch of a new savings account called the IDFC FIRST Global Savings Account, which enables NRIs to hold and operate savings accounts in foreign currencies.

This exclusive initiative for NRIs allows them to maintain balances in US dollars or euros through IDFC FIRST Bank’s GIFT City banking unit in Gujarat.

GIFT City, which is emerging as an important hub for banks offering foreign currency accounts and cross-border financial services under a separate regulatory framework, has seen the growth of several Indian and international banks in recent years.

IDFC FIRST Bank has said that the new savings account is meant for customers who are keen on managing savings in foreign currencies.

Ashish Singh, Head – Retail Liabilities at IDFC FIRST Bank, said the launch is aimed at addressing the needs of NRIs seeking to hold savings in foreign currencies while banking with India through a regulated international financial centre.

With a clear distinction from the existing domestic and NRI savings accounts, the new account offers digital onboarding and paperless international fund transfers from GIFT City to overseas accounts. In addition to this, it also allows full repatriation of principal and interest without restrictions.

IDFC FIRST Bank has clarified that remittance transfers from the account will not attract fees. For NRIs, interest earned on the account and on related fixed deposits is exempt from tax deduction at source (TDS), subject to regulations of GIFT City accounts.

The bank is currently offering an interest rate of 4.75% on US dollar savings balances, with interest credited monthly. NRI customers can place fixed deposits in US dollars or euros, while managing both their NRI banking and GIFT City accounts through a single mobile banking application and relationship management framework. – editor@nrifocus.com