GIFT City Accounts: Can You Cut Your Forex Fees?

Razorpay has received a licence to operate from GIFT City, India's special financial zone. This could soon let regular Indians hold multi-currency accounts and invest globally with lower fees and fewer banking hurdles.

Here's what happened: Razorpay has received a final Payment Service Provider licence from IFSCA, the regulator governing India's GIFT City international financial zone in Gujarat.. The licence allows Razorpay to offer cross-border payment services, multi-currency accounts, and facilitate access to global financial products from within GIFT City.. GIFT City operates under a separate regulatory framework from mainstream India, giving licensed entities more flexibility on forex, cross-border transfers, and multi-currency operations..

What you should do: Check whether your employer or freelance clients can route USD/GBP/EUR payments through a GIFT City account to reduce conversion losses — ask your CA about IFSCA entity setup.. Compare your current bank's outward remittance charges (typically 1–3% plus ₹500–₹1,500 flat fee) against emerging GIFT City options before your next foreign transfer.. If you invest in global stocks or ETFs via LRS, track GIFT City-based platforms — they may soon offer lower forex spread and faster settlement than current feeder-fund routes..

GIFT City accounts are treated as foreign accounts under Indian law — income earned inside GIFT City is tax-exempt for units operating there, but Indian residents using these accounts for personal remittances still owe tax on global income as usual. Always verify with a tax advisor before assuming exemption.

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