The International Financial Services Centres Authority (IFSCA) has highlighted the rapidly expanding role of GIFT City International Financial Services Centre (GIFT-IFSC) in meeting India’s foreign currency mobilisation and external financing needs, with International Banking Units (IBUs) recording strong growth across major international banking activities.
As of August 31, 2026, 20 IBUs operating at GIFT-IFSC had sanctioned USD 54.02 billion under the Reserve Bank of India’s special swap facility for FCNR(B) deposits. Of this amount, around USD 52.82 billion has already been disbursed, underlining the growing capacity of the IFSC banking ecosystem to channel foreign currency liquidity into India.
Sharp Rise in FCNR(B) Swap Activity
The scale of participation has increased substantially within a short period. Aggregate sanctions under the facility stood at USD 28.60 billion on August 14, before rising to USD 37.26 billion on August 21 and reaching USD 54.02 billion by August 31.
The participation of 20 IBUs, comprising both Indian and international banks, reflects the increasing depth and diversity of the banking ecosystem at GIFT-IFSC. Several participating institutions have recorded significant sanctions and disbursements under the RBI facility.
According to IFSCA, the performance demonstrates the ability of GIFT-IFSC to connect banking units with global pools of foreign currency liquidity and facilitate the efficient flow of international capital towards India.
Rising Cross-Border Financing Through GIFT-IFSC
The growth in banking activity extends beyond the FCNR(B) swap facility. Between April and August 2026, IBUs at GIFT-IFSC disbursed USD 11.62 billion in External Commercial Borrowings (ECBs).
Monthly ECB disbursements showed a clear upward trend, increasing from USD 1.54 billion in April to USD 3.54 billion in August. The rise indicates the growing importance of GIFT-IFSC as a platform for Indian entities and financial institutions seeking access to international sources of finance.
The development comes after the Union Finance Minister urged the 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. The focus was on effective implementation of RBI facilities relating to FCNR(B) deposits and ECBs, while encouraging stronger mobilisation of funds from global jurisdictions.
Expansion of International Bond Listings
GIFT-IFSC is also witnessing increasing activity in international capital markets. Indian banks raised USD 11.12 billion through bond listings on IFSC exchanges between April and August 2026.
A significant portion of this activity occurred during July and August, when bonds worth USD 9.17 billion were listed. The development highlights the expanding role of IFSC exchanges in providing financial institutions with access to international investors and diversified sources of capital.
IBUs at GIFT-IFSC are increasingly being used to mobilise funds from a range of overseas markets, including the United Kingdom, United States, Mexico, West Asia, Hong Kong, Singapore and selected African countries.
GIFT-IFSC Strengthens India’s Global Financial Linkages
IFSCA Chairperson K. Rajaraman said the rapid expansion of banking activity at GIFT-IFSC demonstrates the depth, capability and international orientation of India’s financial ecosystem. He noted that the deployment of more than USD 52 billion through the FCNR(B) swap facility, along with strong ECB activity and international bond listings, shows that GIFT-IFSC is increasingly functioning as a bridge between global capital pools and India’s financing requirements.
He further emphasised IFSCA’s commitment to developing a competitive, well-regulated and globally connected financial ecosystem at GIFT-IFSC.
Established under the IFSCA Act, 2019, IFSCA is India’s unified regulatory authority for financial products, services and institutions operating in International Financial Services Centres. GIFT-IFSC is being developed as a strategic international financial hub designed to connect India with global markets and investors.
The increasing activity across foreign currency mobilisation, ECBs and international bond issuances strengthens GIFT-IFSC’s position as an integrated international banking and financial services centre and supports India’s broader objective of strengthening financial connectivity and advancing the Viksit Bharat@2047 vision.
Also Read: NLMC Announces E-Auction of 459 RINL Land Parcels in Visakhapatnam
Author: Shivam
Shivam Dwivedi is a senior journalist with extensive experience in research-driven journalism, policy communication, and multi-platform storytelling. His areas of interest include international relations, defence, science & technology, education, urban development, agriculture, spirituality, and environmental sustainability. His work focuses on in-depth analysis, public discourse, and impactful narratives across governance and development sectors, with a strong commitment to the Sustainable Development Goals (SDGs). Contact: [email protected]
