GIFT City: Banks, Brokers Near Deal on Float Interest Amidst Global Hub Push

• Banks and brokers at GIFT City are close to resolving a long-standing dispute over interest payments on "float balances" – idle client funds held by banks.
• "Float balances" are operational and settlement funds parked with banks due to regulatory requirements, which brokers want to monetize for interest or margin efficiency.
• Banks previously paid no interest but are now considering it, contingent on large, stable trading volumes to justify capital allocation and regulatory costs.
• Brokers argue that the volume precondition is unfair, as significant sums remain parked, undermining commercial viability compared to global practices.
• Resolving this issue is critical for GIFT City's global competitiveness and its ambition to become a leading offshore financial hub.

Why It Matters: GIFT City banks and brokers are nearing a float interest deal, crucial for the hub's global competitiveness.