New Delhi: GIFT-IFSC banking activity gained strong momentum as International Financial Services Centres Authority highlighted rising foreign currency mobilisation. The banking units also expanded cross-border financing and capital market activity.
As of August 31, 2026, 20 International Banking Units had sanctioned $54.02 billion under the Reserve Bank of India’s special FCNR(B) swap facility. They had already disbursed about $52.82 billion under the facility.
The scale of activity increased sharply during August. Aggregate sanctions stood at $28.60 billion on August 14. They then rose to $37.26 billion on August 21. By August 31, the figure had reached $54.02 billion.
Both Indian and foreign banks participated in the facility. Their involvement showed the growing depth of the banking network at GIFT-IFSC. Several participating units recorded substantial sanctions and disbursements.
The latest figures also showed how GIFT-IFSC banking connected domestic institutions with global sources of foreign currency liquidity. In turn, the facility helped channel international funds towards India’s financing needs.
The development followed the Union Finance Minister’s recent direction to managing directors and CEOs of public sector banks. The Minister had asked them to use GIFT-IFSC’s financial services ecosystem and institutional infrastructure.
The direction focused on effective use of RBI swap facilities for FCNR(B) deposits and External Commercial Borrowings. The Finance Minister had also stressed greater use of GIFT City’s infrastructure to mobilise funds from global markets.
GIFT-IFSC banking expands across ECBs and bond markets
The growth in GIFT-IFSC banking extended beyond the FCNR(B) swap facility. Between April and August 2026, International Banking Units disbursed $11.62 billion through ECBs.
Monthly ECB disbursements also showed a clear rise. They increased from $1.54 billion in April to $3.54 billion in August. Therefore, the figures pointed to a growing role for GIFT-IFSC in cross-border financing.
Indian banks also raised $11.12 billion through bond listings on IFSC exchanges during the same period. Of this amount, bonds worth $9.17 billion were listed during July and August 2026.
The bond activity further strengthened the role of GIFT-IFSC in helping financial institutions access international capital markets. Meanwhile, rising ECB activity added another major channel for overseas financing.
Together, FCNR(B) mobilisation, ECB financing and international bond listings showed a broader expansion of the financial ecosystem. The combined activity also reflected stronger links between Indian institutions, overseas investors and global markets.
GIFT-IFSC banking activity involved fund mobilisation from several international jurisdictions. These included the United Kingdom, United States, Mexico, West Asia, Hong Kong and Singapore. Certain African countries also contributed to the wider international reach.
IFSCA Chairperson K. Rajaraman said the rapid expansion showed the depth and growing international focus of GIFT City IFSC.
He said the mobilisation and deployment of more than $52 billion through the FCNR(B) swap facility demonstrated GIFT-IFSC’s growing role. He also pointed to strong ECB activity and international bond listings as signs of wider market integration.
Rajaraman said GIFT-IFSC was increasingly acting as a bridge between global capital pools and India’s financing requirements. He added that IFSCA remained committed to a competitive, well-regulated and globally connected financial ecosystem.
He also said strong bank participation and expanding business volumes had reinforced the IFSC’s position in international banking. The ecosystem was also supporting wider cross-border financial services.
IFSCA serves as the unified regulator for financial products, services and institutions operating in India’s International Financial Services Centres. The Government of India established the authority under the IFSCA Act, 2019.
GIFT-IFSC forms part of the Government’s broader effort to develop an international financial hub in India. The centre aims to connect Indian opportunities with global investors and international markets.
The latest figures indicated that GIFT-IFSC banking had expanded across multiple funding channels. Moreover, the growing use of FCNR(B) swaps, ECBs and bond listings highlighted its increasing role in India’s external financing framework.
