20 IBUs have sanctioned $54.02bn under RBI’s FCNR(B) deposits
GIFT IFSC has emerges as a strong and vibrant international banking hub, having mobilised over US$52.8 billion under RBI’s FCNR(B) Swap Facility, US$11.62 billion in ECBs and US$11.12 billion in bond listings by banks in IFSC exchanges, the Ministry of Finance said on 2 Sept.
The International Financial Services Centres Authority (IFSCA) has also highlighted the strong and growing role of GIFT City IFSC in supporting India’s foreign currency mobilisation and external financing requirements, with IFSC Banking Units (IBUs) demonstrating significant scale and momentum across key international banking activities.
As on 31 August 2026, 20 IBUs have sanctioned US$54.02 billion under the Reserve Bank of India’s special swap facility for FCNR(B) deposits, of which approximately US$52.82 billion has already been disbursed. The scale-up has been particularly rapid in recent weeks, with aggregate sanctions increasing from US$28.60 billion on 14 August to US$37.26 billion on 21 August and further to US$54.02 billion by 31 August 2026.
The broad-based participation of domestic and international banks underscores the depth and capability of the banking ecosystem at GIFT-IFSC. The 20 participating IBUs include leading Indian banks as well as foreign banks, with individual IBUs recording substantial sanctions and disbursements under the facility.
The performance of the IBUs under the FCNR(B) swap facility represents a significant demonstration of the ability of GIFT-IFSC to connect IBUs with global sources of foreign currency liquidity and efficiently channel international capital towards India.
The development follows the recent direction of the Hon’ble Union Finance Minister to the MDs & CEOs of Public Sector Banks to leverage the financial services ecosystem and institutional infrastructure available at GIFT-IFSC for effective implementation of the RBI’s swap facilities for FCNR(B) deposits and External Commercial Borrowings (ECBs). Hon’ble Finance Minister had also emphasised greater utilisation of GIFT City IFSC’s financial services and institutional infrastructure for mobilisation of funds from global jurisdictions.
The momentum at GIFT-IFSC extends beyond the FCNR(B) swap facility. During April to August 2026, IBUs at GIFT-IFSC disbursed US$11.62 billion of ECBs. Monthly ECB disbursements increased from US$1.54 billion in April to US$3.54 billion in August 2026, demonstrating the growing role of GIFT-IFSC as a platform for cross-border financing.
In addition, Indian Banks have raised US$11.12 billion through bond listings on IFSC exchanges during April to August 2026, of which bonds totalling to US$9.17 bn were listed in July-Aug 2026, further reflecting the expanding role of GIFT-IFSC in facilitating international capital market access for financial institutions in IFSC, the Ministry said.
The increasing scale of activity across FCNR(B) mobilisation, ECB financing and international bond issuances demonstrates the emergence of GIFT-IFSC as a deep, diversified and increasingly integrated international banking ecosystem.
The strong response also reflects the ability of the GIFT-IFSC ecosystem to facilitate engagement with international markets and overseas investors, complementing India’s broader efforts to strengthen foreign exchange inflows. It is observed that IBUs at GIFT-IFSC are being utilised to leverage fund mobilisation from multiple jurisdictions, including the United Kingdom, United States, Mexico, West Asia, Hong Kong, Singapore and certain African countries.
IFSCA Chairperson K. Rajaraman said, “The rapid scale-up of banking activity at GIFT-IFSC is a strong testament to the depth, capability and growing international orientation of India’s GIFT City International Financial Services Centre. The mobilisation and deployment of over US$52 billion under the FCNR(B) swap facility, alongside strong ECB activity by IBUs in GIFT IFSC and international bond listings at IFSC Exchanges, demonstrate that GIFT-IFSC is increasingly serving as an effective bridge between global pools of capital and India’s financing needs.
IFSCA remains committed to fostering a competitive, well-regulated and globally connected financial ecosystem at GIFT-IFSC. The strong participation of banks and the scale of business being undertaken through the IFSC reinforce its position as an important platform for international banking and cross-border financial services.”
The IFSCA is the unified regulatory authority established by the Government of India under an Act of Parliament, IFSCA Act, 2019 for the development and regulation of financial products, financial services and financial institutions in the International Financial Services Centres (IFSC) in India.
GIFT-IFSC is a strategic project of the Government and is being developed as a leading international financial hub connecting India with global markets and global investors with India opportunities, it said. fiinews.com
