GIFT-IFSC banks sanction $54 billion under RBI’s FCNR(B) swap facility | Financial Investment
Twenty international banking units (IBUs) at GIFT-IFSC have sanctioned $54.02 billion under the Reserve Bank of India’s (RBI’s) special swap facility for FCNR(B) deposits as of August 31, of which $52.82 billion has been disbursed, the International Financial Services Centres Authority (IFSCA) said on Wednesday.
Sanctions under the facility rose from $28.60 billion on August 14 to $37.26 billion on August 21 and further to $54.02 billion by August 31. The participating IBUs include domestic and foreign banks.
The facility was part of the RBI’s measures to mobilise foreign currency inflows through FCNR(B) deposits. The FCNR(B) window closed on August 31, while the facility for external commercial borrowings (ECBs) and overseas foreign currency borrowings remains open until December 31.
The activity at GIFT-IFSC also extended to ECBs and overseas bond listings. IBUs disbursed $11.62 billion through ECBs between April and August 2026, with monthly disbursements 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 April-August, of which $9.17 billion was raised through listings in July and August.
IFSCA said IBUs at GIFT-IFSC are being used to mobilise funds from multiple jurisdictions, including the UK, US, Mexico, West Asia, Hong Kong, Singapore and some African countries.
The development follows the finance ministry’s direction to public sector banks to use the financial services ecosystem and institutional infrastructure at GIFT-IFSC for implementing the RBI’s swap facilities for FCNR(B) deposits and ECBs.
