REC Ltd receives RBI nod to establish GIFT City subsidiary

GIFT City subsidiary: REC Ltd, a state-owned enterprise under the Ministry of Power and a prominent non-banking financial company (NBFC), has obtained approval from the Reserve Bank of India (RBI) to establish a subsidiary in Gujarat International Finance Tech-City (GIFT) in Gandhinagar, Gujarat.

The subsidiary, slated to operate within GIFT, will undertake various financial activities, including lending, investment, and other financial services, according to a company statement.

With the receipt of a 'No Objection Certificate' (NOC) from the RBI, REC Ltd is set to expand its presence into GIFT City, recognised as a thriving hub for financial services in India.

The move aligns with REC's strategic vision to diversify its portfolio and explore new avenues for growth. Vivek Kumar Dewangan, CMD of REC Ltd, expressed confidence in leveraging the conducive environment and world-class infrastructure offered by GIFT City to enhance the company's international lending activities.

Dewangan stated, "The GIFT City platform offers a conducive environment for international lending activities coupled with world-class infrastructure. We are confident that REC will harness these advantages to carve a niche for itself in the global market."

By venturing into GIFT City, REC aims to tap into the burgeoning opportunities within the financial services sector and bolster its position as a leading player in the industry.

The establishment of a subsidiary in GIFT City signifies REC's commitment to strategic expansion and underscores its efforts to capitalise on emerging trends and opportunities in the financial landscape.

(with PTI inputs)