GIFT-IFSC IBUs Sanction USD 54.02 Bn Under FCNR(B) Swap Facility, Disburse USD 52.82 Bn

New Delhi, Sep 3 (KNN) IFSC Banking Units (IBUs) at GIFT City’s International Financial Services Centre (GIFT-IFSC) have sanctioned USD 54.02 billion under the Reserve Bank of India’s (RBI) special swap facility for FCNR(B) deposits as of August 31, 2026, the International Financial Services Centres Authority (IFSCA) said.

Of the sanctioned amount, around USD 52.82 billion has already been disbursed. Sanctions rose sharply from USD 28.6 billion on August 14 to USD 37.26 billion on August 21 before reaching USD 54.02 billion by the end of August.

A total of 20 IBUs, including leading Indian and foreign banks operating from GIFT-IFSC, are participating in the facility.

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.” 

ECB Disbursements Rise

The momentum extends beyond the FCNR(B) swap facility. IBUs at GIFT-IFSC disbursed USD 11.62 billion through External Commercial Borrowings (ECBs) between April and August 2026.

Monthly ECB disbursements increased from USD 1.54 billion in April to USD 3.54 billion in August, highlighting the growing role of GIFT-IFSC in facilitating cross-border financing.

Indian banks also raised USD 11.12 billion through bond listings on IFSC exchanges during April-August, with USD 9.17 billion raised through listings in July and August alone.

Global Sources of Foreign Currency

IFSCA noted that IBUs at GIFT-IFSC are mobilising funds from multiple jurisdictions, including the UK, US, Mexico, West Asia, Hong Kong, Singapore and parts of Africa.

The development follows Finance Minister Nirmala Sitharaman’s direction to public sector banks to make greater use of GIFT-IFSC’s financial infrastructure for implementing RBI swap facilities for FCNR(B) deposits and ECBs.

“The mobilisation and deployment of over USD 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,” Rajaraman said.

(KNN Bureau)