Mumbai: ICICI Bank has launched a USD-denominated debit card in partnership with Visa, marking a change in the way NRIs manage offshore money by eliminating currency conversion layers for dollar spending.The product allows NRIs to spend directly in USD without the usual 3.5% currency markup fee and GST that is applicable when using Indian NRE or NRO debit cards on international transactions. Traditionally, NRIs spending on US or global USD platforms using Indian cards would have to pay around $1,035 for a $1,000 transaction after markup and taxes, while the new card enables $1,000 spend at the same price. This translates into a 3% to 4% annual savings for users who have recurring dollar-denominated expenses.This card is linked to the USD Global Savings Account maintained at GIFT City International Banking Unit rather than a domestic account. Structure-wise, it enables users to maintain earnings in USD and avoid the risk of INR volatility. It also adds liquidity to offshore balances, allowing direct spending without the need to transfer funds across jurisdictions.The offering operates on the Visa Infinity platform, the highest tier in Visa’s card network. This includes features like travel-related benefits, concierge services and security controls including EMV chip protection and the ability to manage limits through digital banking channels.Compared to standard NRE debit cards, the new card uses USD as the base currency instead of INR and offers 0% forex markup on USD transactions, while traditional cards typically charge between 2% and 3.5%. Currency risk remains high with INR-based cards due to depreciation, while holding funds in USD reduces the risk. This product is designed for global spending, especially in the US, while standard NRE cards are typically used for domestic spending.The card is targeted at US-based NRIs, global professionals from regions such as the Middle East, Europe and Southeast Asia, and parents financing overseas education expenses in US dollars. It is designed to minimize conversion losses in recurring payments such as tuition and living costs.However, costs are considered at the funding level. Users must load a USD global savings account first, and those converting INR to USD may face conversion spreads at that time. The zero markup benefit only applies to USD transactions, and spending in other currencies like GBP or EUR may still incur a conversion fee in USD. Tax implications may also arise, and users may need to take into account FATCA or CRS reporting requirements depending on their country of residence.The launch reflects a broader effort to establish GIFT City as a global financial hub by integrating offshore banking with everyday payment capabilities for NRIs.Speaking at the launch, Vipul Agarwal, Head of Cards and Payment Solutions, ICICI Bank, said: “As global mobility increases, NRIs often face high currency conversion costs and fragmented international banking experiences. This USD-denominated debit card represents a significant step forward in providing customers seamless access to their USD savings.Rishi Chhabra, Country Manager for India at Visa, said: “As cross-border financial needs continue to grow, this solution enables NRIs to access and spend their US dollar savings globally with greater convenience, transparency and control. By leveraging ICICI Bank’s broad reach and Visa’s global network, we are supporting India’s vision of building a world-class financial infrastructure and expanding connected payments experiences globally with GIFT City.“