You Won’t Believe Why Taipei Fubon Just Ditched Mumbai for GIFT City Gold

In a surprising strategic shift, Taipei Fubon Commercial Bank, the flagship banking arm of Taiwan’s Fubon Financial Holding Co., has secured regulatory approval to establish a branch in India’s emerging financial hub, Gujarat International Finance Tec-City (GIFT City). The move marks a significant departure from its earlier plan to open in Mumbai and underscores GIFT City’s growing allure for global financial players.

According to Taiwan’s Financial Supervisory Commission (FSC), which granted the approval, Fubon evaluated multiple locations before concluding that GIFT City offered unparalleled advantages. “The single-window clearance mechanism, attractive tax incentives, and ready-to-use infrastructure at GIFT City align perfectly with our objectives to support Taiwanese businesses and other international enterprises operating in India,” said Hou Li-yang, Vice Director General of the FSC’s Banking Bureau.

GIFT City, India’s first fully operational greenfield smart city, is designed to provide a world-class ecosystem for banking, insurance, capital markets, and fintech. Fubon’s decision follows January’s approval for CTBC Bank, making Fubon the second Taiwanese lender to opt for GIFT City over traditional metropolitan branches. CTBC, which also received FSC clearance earlier this year, has yet to inaugurate its GIFT City office but already runs branches in New Delhi and Kattupakkam.

Industry analysts believe Fubon’s entry could trigger a domino effect. “With Fubon on board, other Taiwanese and global banks are likely to accelerate their applications for GIFT City,” said financial consultant Radhika Menon. “This will solidify GIFT City’s status as India’s premier offshore banking and fintech gateway.”

Fubon’s broader footprint includes branches in Hong Kong, Singapore, Ho Chi Minh City, and a wholly owned subsidiary in Shanghai. In India, it currently operates only representative offices in Mumbai, but a full-service branch in GIFT City would allow it to accept deposits, extend loans, and offer a full suite of corporate banking services.

Final clearance from Indian regulators is still pending, and Fubon remains in discussions with the GIFT City Development Authority to finalize its lease and operational roadmap. Once operational, Fubon’s GIFT City branch is expected to focus on trade finance, treasury services, and cross-border banking solutions, leveraging the city’s state-of-the-art infrastructure and regulatory sandbox for innovation.

As India races to position GIFT City alongside global financial centers, Taipei Fubon’s pivot signals strong confidence in the project and highlights the smart city’s potential to reshape the country’s banking ecosystem. 

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