IFSCA Tests Aadhaar Face Authentication To Enable Seamless NRI Investments Through GIFT City

The International Financial Services Centres Authority (IFSCA) is testing Aadhaar-based unassisted face authentication with four overseas jurisdictions to make cross-border KYC procedures easier for non-resident Indians (NRIs).

The initiative is part of IFSCA’s efforts to position Gujarat International Finance Tec-City (GIFT City) as a global wealth management hub, allowing overseas Indians to digitally open accounts and invest without physical documentation.

IFSCA Chairman K Rajaraman said NRIs with an Aadhaar footprint would be able to complete onboarding digitally without external assistance.

“If the NRI has an Aadhaar footprint, he will be able to effortlessly get onboarded. We want the entire digital onboarding process and documentation process to be paperless, without any courier or wet signatures required,” he said.

Focus on cross-border investments and wealth management

Rajaraman said simplifying international KYC processes and improving cross-border payment systems were key requirements for enabling NRIs to invest through GIFT City and access global markets.

IFSCA has also directed banks operating at the International Financial Services Centre (IFSC) to create dedicated wealth management units. Several institutions, including HSBC and State Bank of India, have started developing such services aimed at high-net-worth individuals and overseas family offices.

The move is expected to tap into the large financial resources of the Indian diaspora. Rajaraman said NRIs sent more than $140 billion to India last year, and a similar pool could potentially be channelled into global investments through GIFT City.

GIFT City banking ecosystem expands

The banking sector at GIFT IFSC is projected to grow further, with total bank assets expected to reach around $200 billion by the end of the financial year from the current level of over $143 billion.

Currently, 42 banks operate in the IFSC, including 21 foreign banks. Rajaraman also said the centre is increasingly becoming a platform for financing large assets, with Indian banks participating in loan syndications.

He added that growing lender confidence could help GIFT IFSC support financing for assets such as aircraft and ships, strengthening its role as an international financial hub.