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Mashreq Bank Gets IFSCA Nod for GIFT City IBU

4 July 20251 min read
BANKING & FINANCEMashreq BankGets IFSCA Nod forGIFT City IBU4 July 2025safalsetu.com

Why in the news

The UAE’s Mashreq Bank secured in-principle approval for an IFSC Banking Unit (IBU) at GIFT City, Gujarat, the first UAE bank to do so.

Key facts

  • Approving body: International Financial Services Centres Authority (IFSCA); the UAE Central Bank and SEZ Authority also cleared it.
  • Target: operational by Q4 2025, subject to final clearances.
  • Branch site fixed; hiring for key posts under way.
Planned services
Foreign currency loans
Trade finance solutions
Treasury and risk management products

Significance

  • Deepens India-UAE financial cooperation.
  • Strengthens GIFT City as a global banking destination and a gateway to trade flows.

Exam angle

  • IBU: IFSC Banking Unit; regulator IFSCA.
  • Home country: UAE; location: GIFT City, Gujarat.

Test yourself

1. Which authority gave Mashreq Bank in-principle approval to set up an IBU at GIFT City?

The notes say IFSCA granted the in-principle approval.

2. Mashreq Bank became the first bank from which country to get in-principle approval for a GIFT City IBU?

It is described as the first UAE-based bank to reach this milestone.

3. When is Mashreq's GIFT City IBU expected to be operational?

The notes say the unit should be operational by Q4 2025, subject to final clearances.

This topic is part of Daily Current Affairs 4 July 2025 (15 topics).

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