GIFT City's International Financial Services Centre (IFSC) has achieved a significant milestone, with its banking units deploying over $52.8 billion under the Reserve Bank of India’s (RBI) special swap facility for Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits. This robust performance has drawn praise from prominent financial figures, including Uday Kotak, Founder & Director at Kotak Mahindra Bank.
Kotak took to social media platform X (formerly Twitter) to commend the achievement, stating, "Excellent performance by GIFT IFSC banking units funding $52 billion of the $127 billion FCNR(B) deposits raised under RBI swap facility. This signifies GIFT’s emergence as a growing International Financial Centre."
Rapid Growth Fueled by Government Directive
The surge in FCNR(B) deposit deployment underscores GIFT IFSC's accelerating momentum in cross-border financing, foreign exchange inflows, and international bond issuances. Official data from the International Financial Services Centres Authority (IFSCA) shows that 20 IFSC Banking Units (IBUs) sanctioned $54.02 billion under the RBI swap facility by August 31, 2026, with $52.82 billion already disbursed.
This rapid expansion, particularly through August, saw aggregate sanctions climb from $28.60 billion on August 14 to $54.02 billion by month-end. The initiative received a direct impetus from Union Finance Minister Nirmala Sitharaman, who had urged Public Sector Bank MDs and CEOs to leverage GIFT City IFSC’s infrastructure for executing RBI swap facilities and mobilizing overseas funds.
Global Participation and Broader Impact
Both leading domestic and foreign banks actively participated in the drive, drawing foreign currency liquidity from diverse global jurisdictions, including the United Kingdom, United States, Mexico, West Asia, Hong Kong, Singapore, and various African nations. This broad participation highlights GIFT IFSC's increasing connectivity to global capital markets.
Beyond the FCNR(B) facility, IBUs have also played a crucial role in other financial activities. Between April and August 2026, they disbursed $11.62 billion in External Commercial Borrowings (ECBs), with monthly disbursements more than doubling during this period. Additionally, Indian banks raised $11.12 billion through bond listings on IFSC exchanges in the same timeframe, with a significant $9.17 billion raised in July and August alone.
GIFT IFSC: A Bridge to Global Capital
The IFSCA, in a statement on X, emphasized, "GIFT IFSC emerges as a strong and vibrant international banking hub, advancing the vision of Viksit Bharat 2047. GIFT IFSC continues to strengthen its role in supporting India’s foreign-currency mobilisation and cross-border financing requirements."
K Rajaraman, Chairperson of IFSCA, further elaborated on the long-term significance of these achievements. "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. The mobilisation and deployment of over $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," he stated. Rajaraman affirmed IFSCA's ongoing commitment to fostering a competitive, well-regulated, and globally connected financial ecosystem.