U.S. Banks Expand India GCC Footprint as $100,000 H-1B Fee Bites

(U.S. banks are preparing to deepen operations in India after the Trump administration imposed a new $100,000 H-1B visa fee on petitions filed from abroad, effective September 21, 2025.) Executives at firms including Citigroup, JPMorgan Chase, and Goldman Sachs are reassessing hiring plans and pushing more roles into their India-based Global Capability Centers as a quicker, cheaper path to scale critical functions without sending new foreign staff to the United States.

The fee applies to new H-1B petitions filed after the effective date, not to existing H-1B workers or cases already in process. That distinction matters. Banks are expected to retain their current U.S.-based H-1B teams while shifting many new or incremental roles to India where talent is deep and seats can be added fast. According to analysis by VisaVerge.com, the policy is already triggering staffing model reviews across large financial institutions that rely on cross-border talent for technology and risk functions.

Policy shock and bank response

The immediate impact is cost. A sudden $100,000 surcharge on top of other H-1B costs changes the math for sending new hires to the United States 🇺🇸. In response, banks are routing roles to India that do not legally or operationally require a U.S. location.

Commonly shifted roles include:

• Trading support
• Software engineering and engineering pods that own platforms
• Data engineering and data governance
• Quantitative modeling and risk analytics
• Back-office functions such as trade settlement, reconciliations, KYC support, and reporting
• Shared services and compliance tasks that do not require U.S.-based presence

India offers a ready-built platform. More than 1.9 million people work in Global Capability Centers across Bengaluru, Mumbai, Hyderabad, Pune, and other hubs. Several Wall Street firms already employ tens of thousands there, with mature teams across engineering, operations, and finance.

Sector forecasts point to:

• >2,500 centers by 2030
• A sector value beyond $110 billion

This creates ample room to absorb new demand from banks shifting headcount in light of the new H-1B visa fee.

Banks emphasize this is not a full exodus from the U.S. Some roles will remain onshore for regulatory, client, or risk reasons. But for many functions, adding seats in India is simpler and cheaper than pursuing new U.S. visa cases subject to a six-figure surcharge and longer timelines.

What shifts — and what stays

Executives describe a phased playbook rather than a sudden relocation. Near-term moves center on:

1. Building larger engineering pods in India to own entire platforms, not just handle support tickets.
2. Moving risk model development and validation teams that interact mainly with internal stakeholders.
3. Growing shared services covering trade settlement, reconciliations, KYC support, and reporting.
4. Expanding data governance and analytics units that can operate across time zones.

Tasks likely to remain in the United States:

• Sensitive trading roles and positions handling regulated market activity in real time.
• Client-facing advisory and sales work that relies on proximity and trust.
• Compliance functions tied to U.S. regulatory jurisdiction or strict data location limits.

Banks will weigh talent depth against cost. India’s labor market remains cost-advantageous, especially for large-scale engineering and operations. However, high-end quantitative finance and niche domain roles can be expensive and hard to hire anywhere. Leaders say the question is not only cost but whether a role can be done well from India without harming speed or control.

Process notes and practical steps

For employers that still plan to file in the United States, the core process remains the same despite the new fee:

1. Employer files Form I-129 with U.S. Citizenship and Immigration Services (USCIS) to petition for H-1B classification.
2. If approved and the worker is abroad, the worker then seeks a consular visa using the State Department’s online application (DS-160) before traveling.

Official information and key forms:

• USCIS H-1B overview: H-1B Specialty Occupations
• Petition form: Form I-129, Petition for a Nonimmigrant Worker
• Consular visa form: DS-160 Online Nonimmigrant Visa Application

Employers and counsel will look for agency guidance clarifying how the new surcharge is assessed at filing and whether any exemptions apply. Banks say they will continue to file for must-have U.S. roles but will scrutinize every new petition in light of the $100,000 surcharge and timing concerns.

Operational limits and open questions

There are real constraints on how far offshoring can go. Considerations include:

• Data residency rules
• Client confidentiality
• The need for in-person supervision
• Regulatory preferences for key risk or compliance officers to sit within particular jurisdictions

Even where offshoring is permitted, firms must maintain consistent controls, audit trails, and cybersecurity standards across borders.

Other uncertainties to monitor:

• Policy durability: The fee is new; legal challenges or agency clarifications could change its scope. Banks expect guidance and potential court review to shape how broadly it applies and whether carve-outs emerge.
• Delivery risk: Rapid hiring in India can strain leadership pipelines, vendor oversight, and training. Firms will need to invest in management depth and workflow tooling to keep quality high as teams scale.
• Morale and retention: U.S.-based staff on work visas may view the shift as a signal of future cuts or fewer transfers. Clear communication and career pathways will be critical to limit turnover.

Implications for India and the U.S.

For India:
– The move brings opportunity: roles that once started in the U.S. may now begin in Bengaluru or Hyderabad, with promotion tracks that do not depend on relocation.
– Indian tech and service providers could see increased outsourcing and B2B work from banks seeking rapid capacity expansion.

For U.S. stakeholders:
– The trade-off is complex. Onshore hiring pressure may ease in some functions, but debates will intensify around domestic job protection versus global sourcing.
– Lawmakers and regulators will likely watch whether the fee prompts large-scale offshoring and what that means for local labor markets and financial system oversight.

What to watch in the coming months

• Announcements of larger India hiring classes or new sites in key cities.
• New or expanded vendor agreements with Indian IT and business services firms.
• Agency guidance on how the surcharge applies to amendments, transfers, or cap-exempt filings.
• Early court decisions that narrow or uphold the new fee.
• Budget reforecasts in bank technology and operations lines that assume India-led growth.

The headline remains simple: a steep H-1B visa fee has pushed U.S. banks to use Global Capability Centers in India more aggressively for roles that can be done well offshore. The shift will not replace every U.S. job, but for many functions that travel well across borders, the center of gravity is moving toward the Indian hubs that already power much of the world’s financial technology and operations.