GIFT IFSC mobilises over $52.8 billion through FCNR(B) swap facility as international banking activity surges
GIFT IFSC has emerged as a major channel for foreign-currency mobilisation, with IBUs disbursing $52.82 billion under the FCNR(B) swap facility and $11.62 billion in ECBs through August 2026.
The participation of both Indian and international banks under the facility highlights the growing depth of the banking ecosystem at GIFT-IFSC.
GANDHINAGAR: GIFT City’s International Financial Services Centre (GIFT-IFSC) is emerging as a significant international banking hub, with International Banking Units (IBUs) mobilising foreign currency through the Reserve Bank of India’s FCNR(B) swap facility and expanding their role in cross-border financing and capital markets.
The International Financial Services Centres Authority (IFSCA) said that as of August 31, 2026, 20 IBUs had sanctioned $54.02 billion under the RBI’s special swap facility for FCNR(B) deposits, of which approximately $52.82 billion had already been disbursed.
The scale of mobilisation has accelerated sharply during August. Aggregate sanctions rose from $28.60 billion on August 14 to $37.26 billion on August 21 before reaching $54.02 billion by August 31.
The participation of both Indian and international banks under the facility highlights the growing depth of the banking ecosystem at GIFT-IFSC.
According to IFSCA, the performance of IBUs under the FCNR(B) swap facility demonstrates the ability of GIFT-IFSC to connect banks with global sources of foreign-currency liquidity and channel international capital towards India’s financing requirements.
The development follows the Union Finance Minister’s direction to managing directors and chief executive officers of public sector banks to make greater use of the financial services ecosystem and institutional infrastructure available at GIFT-IFSC for implementing the RBI’s swap facilities for FCNR(B) deposits and External Commercial Borrowings (ECBs).
ECB activity gains momentum
The expansion of international banking activity at GIFT-IFSC extends beyond the FCNR(B) facility.
Between April and August 2026, IBUs at GIFT-IFSC disbursed $11.62 billion in ECBs. Monthly ECB disbursements increased from $1.54 billion in April to $3.54 billion in August, indicating a substantial increase in cross-border financing activity through the IFSC.
The growth in ECB disbursements adds another dimension to GIFT-IFSC’s role in connecting Indian financing requirements with international sources of capital.
Banks turn to IFSC exchanges for bond listings
Indian banks have also increasingly used IFSC exchanges to access international capital markets.
During April-August 2026, Indian banks raised $11.12 billion through bond listings on IFSC exchanges. Of this amount, bonds worth $9.17 billion were listed during July and August alone.
The figures point to increasing use of GIFT-IFSC’s capital-market infrastructure by Indian financial institutions seeking access to international investors and funding sources.
Taken together, activity across the FCNR(B) swap facility, ECB financing and international bond listings is creating a more diversified international banking ecosystem within GIFT-IFSC.
Growing links with global capital
IFSCA said IBUs at GIFT-IFSC are increasingly being used to mobilise funds from multiple international jurisdictions, including the United Kingdom, the United States, Mexico, West Asia, Hong Kong, Singapore and certain African countries.
This growing geographic spread of funding sources is strengthening the IFSC’s role as an intermediary between global pools of capital and Indian financing requirements.
K. Rajaraman, Chairperson, IFSCA, said the rapid expansion of banking activity demonstrated the depth, capability and growing international orientation of GIFT City’s IFSC.
He said the mobilisation and deployment of more than $52 billion through the FCNR(B) swap facility, alongside ECB activity and international bond listings, showed that GIFT-IFSC was increasingly functioning as a bridge between global capital and India’s financing needs.
Rajaraman said IFSCA would continue to focus on developing a competitive, well-regulated and globally connected financial ecosystem at GIFT-IFSC.
The IFSCA is the unified regulatory authority established under the IFSCA Act, 2019 for the development and regulation of financial products, financial services and financial institutions in India’s International Financial Services Centres.
GIFT-IFSC is being developed as an international financial hub intended to connect India with global markets and international investors. The latest figures indicate that banking activity at the IFSC is expanding across multiple channels, from foreign-currency liquidity and external borrowing to international bond markets.
