GIFT IFSC MOBILISES OVER USD 52.8 BILLION UNDER RBI'S FCNR(B) SWAP FACILITY

OVERVIEW

• GIFT City IFSC has emerged as a strong and vibrant international banking hub. On 2 September 2026, the IFSCA issued a press release highlighting the strong and growing role of GIFT City IFSC in supporting India's foreign currency mobilisation and external financing requirements.
• As on 31 August 2026, 20 IFSC Banking Units (IBUs) have sanctioned USD 54.02 billion under the Reserve Bank of India's special swap facility for FCNR(B) deposits, of which approximately USD 52.82 billion has already been disbursed.
• The scale-up has been remarkably rapid aggregate sanctions rose from USD 28.60 billion on 14 August to USD 37.26 billion on 21 August, and further to USD 54.02 billion by 31 August 2026.
• The development follows the Hon’ble Union Finance Minister’s direction to Public Sector Banks to leverage GIFT IFSC for effective implementation of RBI’s FCNR(B) deposit and ECB swap facilities.

BACKGROUND

• FCNR(B) (Foreign Currency Non-Resident – Bank) deposits are foreign-currency-denominated term deposits maintained by non-resident Indians with Indian banks, where the exchange-rate risk is borne by the bank.
• Under the RBI's special swap facility, banks can swap the foreign currency mobilised through such deposits with the RBI, providing banks a cost-effective hedge and supporting India's foreign exchange inflows.
• IBUs at GIFT IFSC, operating under the IFSCA (Banking) Regulations, 2020, are permitted to accept deposits from non-residents in freely convertible foreign currencies, making them a natural conduit for mobilising such funds from global jurisdictions.

KEY HIGHLIGHTS

• Aggregate sanctions under the FCNR(B) swap facility by IBUs grew from USD 28.60 billion to USD 54.02 billion between 14 August and 31 August 2026.
• The 20 participating IBUs include leading Indian banks as well as foreign banks, with individual IBUs recording substantial sanctions and disbursements underscoring the depth and capability of the banking ecosystem at GIFT IFSC.
• During April–August 2026, IBUs disbursed USD 11.62 billion of ECBs. Monthly ECB disbursements rose from USD 1.54 billion in April to USD 3.54 billion in August 2026
• Indian banks raised USD 11.12 billion through bond listings on IFSC exchanges during April–August 2026, of which bonds totalling USD 9.17 billion were listed in July–August 2026 alone.
• IBUs are being utilised to mobilise funds from multiple jurisdictions, including the United Kingdom, United States, Mexico, West Asia, Hong Kong, Singapore and certain African countries.
• Sh. K. Rajaraman, Chairperson, IFSCA, described the rapid scale-up as "a strong testament to the depth, capability and growing international orientation" of GIFT IFSC, which is "increasingly serving as an effective bridge between global pools of capital and India's financing needs."

WHY IT MATTERS

• For Banks: Demonstrates the capability of IBUs to connect with global sources of foreign currency liquidity and efficiently channel international capital towards India at scale.
• For Indian Corporates: Reinforces GIFT IFSC as a preferred platform for cross-border financing through ECBs, offering access to foreign currency funding from a domestic international jurisdiction.
• For IFSC Exchanges: Growing bond listings by Indian banks deepen the debt capital market at GIFT IFSC and expand international capital market access for financial institutions.
• For India's External Sector: The strong response complements India's broader efforts to strengthen foreign exchange inflows and stabilise the external financing position.

CONCLUSION

• The scale and pace of activity across FCNR(B) mobilisation, ECB financing and international bond issuances mark the emergence of GIFT IFSC as a deep, diversified and increasingly integrated international banking ecosystem.
• IFSCA has reaffirmed its commitment to fostering a competitive, well-regulated and globally connected financial ecosystem at GIFT IFSC, in line with the Vikasit Bharat@2047 agenda envisioned by the Hon'ble Prime Minister.