International Banking Units operating at GIFT City’s International Financial Services Centre have sanctioned loans totalling $54.02 billion under the Reserve Bank of India’s special swap facility linked to FCNR(B) deposits as of August 31, 2026. Of this amount, approximately $52.82 billion has already been disbursed, reflecting a high rate of utilisation within a short period. The figures, released by the International Financial Services Centres Authority, underscore the growing role of the IFSC as a channel for foreign currency funding.
Scale of Sanctions and Disbursements
Twenty IBUs participated in the facility, comprising both leading Indian banks and foreign banks with a presence at GIFT-IFSC. The aggregate sanctions reached $54.02 billion by the end of August. Disbursements stood at around $52.82 billion on the same date, indicating that the large majority of approved amounts had been converted into actual funding.
The pace of activity accelerated notably during August. Sanctions stood at $28.60 billion on August 14, rose to $37.26 billion by August 21, and then climbed further to $54.02 billion by August 31. Earlier data points show a steady build-up through July, with the facility gaining significant momentum in the final weeks before the FCNR(B) window closed.
Purpose of the RBI Swap Facility
The special swap facility was introduced by the Reserve Bank as part of measures to mobilise foreign currency inflows through FCNR(B) deposits. It enabled banks operating via IBUs at the IFSC to access rupee liquidity against foreign currency resources raised under the scheme, thereby supporting the deployment of those funds. The FCNR(B) component of the facility closed on August 31, 2026. A related window covering external commercial borrowings and overseas foreign currency borrowings remains open until December 31.
The structure allowed participating banks to intermediate foreign currency deposits and convert them into usable funding for eligible purposes while managing exchange-related aspects through the central bank’s swap mechanism.
Broader Activity at GIFT-IFSC
Beyond the FCNR(B) swap facility, IBUs at GIFT City recorded additional foreign currency mobilisation. Between April and August 2026, these units disbursed $11.62 billion through external commercial borrowings. Monthly ECB disbursements showed an upward trend, rising from $1.54 billion in April to $3.54 billion in August.
Indian banks also raised $11.12 billion through bond listings on IFSC exchanges during the same five-month period. Of this, $9.17 billion was raised in July and August alone, pointing to increased use of the IFSC platform for capital market access.
Funds under these various channels were mobilised from a range of jurisdictions, including the United Kingdom, the United States, Mexico, West Asia, Hong Kong, Singapore and certain African countries. The diversity of sources reflects the expanding international reach of banking operations based at the IFSC.
Significance for the IFSC Ecosystem
The rapid scale-up of sanctions and disbursements under the RBI facility demonstrates the operational readiness of the banking infrastructure at GIFT-IFSC. The participation of twenty IBUs, spanning domestic and international institutions, indicates that the centre has developed sufficient depth to handle large volumes of foreign currency transactions within a compressed timeframe.
Officials associated with the International Financial Services Centres Authority have described the mobilisation as evidence that GIFT-IFSC is functioning as an effective bridge between global pools of capital and India’s financing requirements. The combination of the swap facility, ECB activity and bond listings illustrates multiple pathways through which the centre is supporting external funding needs.
Operational and Policy Context
Public sector banks, among others, were encouraged to utilise the institutional infrastructure available at the IFSC for effective implementation of the facility. The concentration of activity in a single international financial services centre has allowed for coordinated reporting and monitoring of the flows.
The high conversion rate from sanctions to disbursements—nearly 98 percent—suggests that the approved facilities were aligned with actual demand and that operational processes at the IBUs enabled timely deployment of funds. The sharp rise in volumes during the second half of August further indicates that banks and depositors responded actively as the FCNR(B) window approached its closing date.
Outlook
With the FCNR(B) swap window now closed, attention is expected to shift to the remaining facilities for external commercial borrowings and overseas foreign currency borrowings, which continue until the end of December. The experience gained under the recently concluded window may influence how banks approach subsequent foreign currency mobilisation efforts through the IFSC.
The $54.02 billion in sanctions and the corresponding disbursements mark a substantial contribution to foreign currency inflows intermediated via GIFT City. Combined with parallel activity in ECBs and bond issuances, the data point to a maturing ecosystem capable of handling significant cross-border financial flows. The figures reinforce the position of GIFT-IFSC as an increasingly important platform for channelling international capital in support of India’s external financing needs.
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