OffShore Deposit for Gift City

Offshore FAQs

1. What is an Offshore Deposit?

An Offshore Deposit is a deposit account you can open in a country other than your own. These deposits are interest-generating and come with a fixed tenure. You can open the deposit in major currencies like USD, GBP, EUR and AUD. After the deposit matures, the bank renews it automatically if you choose to do so.

2. What are Onshore and Offshore deposits?

Onshore Deposits are deposits you can open with a bank in your home country. As a Resident Indian, a Fixed Deposit (FD) that you open with a bank in India is referred to as Onshore Deposit. If you open deposit account with a bank located in a different jurisdiction than that of your country, it is called an Offshore Deposit Account. Therefore, a foreign national opening a bank account in India is said to have an Offshore Account in India.

3. What is an example of Offshore Banking?

Let’s say you are a Resident Indian, and you want to invest in the US stock market. In this case, you need to send and receive money to and from USA in your Indian bank account and incur foreign exchange currency charges frequently. Instead, you can open an account with a bank located in the USA. You can transfer money from your Indian bank account to the Offshore Account in the USA. Subsequently, you can use your US bank account funds to finance your international investments.

4. Can Indians open an Offshore Account?

Yes, they can. As Non-Resident Indian (NRI), you can open an Offshore Deposit Account in India such as the Offshore Deposit for GIFT City. Resident Indians, too, can open Offshore Accounts with banks located in other countries, provided they meet the eligibility criteria for account opening.