5 days ago

GIFT IFSC Mobilises Over $52.8 Billion Through FCNR(B) Swap Facility

GIFT City’s International Financial Services Centre (GIFT-IFSC) is emerging as a significant platform for international banking and cross-border financing, with International Financial Services Centres Authority (IFSCA) data showing that banks have mobilised more than $52.8 billion through the Reserve Bank of India’s FCNR(B) swap facility as of August 31, 2026.

According to IFSCA, 20 International Banking Units (IBUs) operating at GIFT-IFSC have sanctioned $54.02 billion under the RBI’s special swap facility for FCNR(B) deposits, of which approximately $52.82 billion has already been disbursed.

The scale of activity has increased sharply in recent weeks. Aggregate sanctions stood at $28.60 billion on August 14, rising to $37.26 billion on August 21 before reaching $54.02 billion by August 31.

IFSCA said the participation of both domestic and international banks demonstrates the growing depth of the banking ecosystem at GIFT-IFSC. The participating IBUs include leading Indian and foreign banks, with individual institutions recording significant sanctions and disbursements under the facility.

The authority said the performance of the IBUs demonstrates GIFT-IFSC’s ability to connect banks with global sources of foreign-currency liquidity and channel international capital towards India’s financing requirements.

ECB Financing Gains Momentum

The growth in banking activity extends beyond FCNR(B) mobilisation. Between April and August 2026, IBUs at GIFT-IFSC disbursed $11.62 billion in External Commercial Borrowings (ECBs).

Monthly ECB disbursements increased from $1.54 billion in April to $3.54 billion in August, indicating growing use of GIFT-IFSC as a platform for cross-border financing. Indian banks have also raised $11.12 billion through bond listings on IFSC exchanges during the April-August period.

Of this amount, bonds worth $9.17 billion were listed during July and August, further highlighting the role of GIFT-IFSC in providing access to international capital markets.

Global Sources of Capital

IFSCA said IBUs at GIFT-IFSC are being used to mobilise funds from multiple international jurisdictions, including the United Kingdom, United States, Mexico, West Asia, Hong Kong, Singapore and certain African countries.

The developments follow the Union Finance Minister’s direction to the managing directors and CEOs of public-sector banks to make greater use of the financial-services ecosystem and institutional infrastructure available at GIFT-IFSC for implementing RBI swap facilities covering FCNR(B) deposits and ECBs.

K. Rajaraman, Chairperson, IFSCA, said the rapid expansion of banking activity demonstrates the depth and growing international orientation of GIFT City’s financial ecosystem.

He said the mobilisation and deployment of more than $52 billion through the FCNR(B) swap facility, together with ECB activity and international bond listings, shows that GIFT-IFSC is increasingly serving as a bridge between global pools of capital and India’s financing needs.

IFSCA is the unified regulatory authority for financial products, financial services and financial institutions operating in India’s International Financial Services Centres under the IFSCA Act, 2019. GIFT-IFSC is being developed as an international financial hub connecting Indian opportunities with global investors and markets.

By Subramanya Joshi