RBI's FCNR(B) scheme: Uday Kotak lauds GIFT IFSC's role as financial hub with $52.8 billion deployment

Banking units at the GIFT International Financial Services Centre (IFSC) have scaled up operations, disbursing over $52.8 billion under the Reserve Bank of India’s (RBI) special swap facility for Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits.

The rapid expansion underscores the centre's growing momentum across cross-border financing, foreign exchange inflows, and international bond issuances.

The performance drew praise from financial leaders, with Uday Kotak, Founder & Director at Kotak Mahindra Bank, highlighting the milestone on social media. "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," Kotak wrote on X (formerly Twitter).

Official data released by the International Financial Services Centres Authority (IFSCA) reveals that 20 IFSC Banking Units (IBUs) sanctioned $54.02 billion under the RBI swap facility as of August 31, 2026, with $52.82 billion already disbursed.

The facility experienced exponential acceleration through August, with aggregate sanctions surging from $28.60 billion on August 14 to $37.26 billion on August 21, before reaching $54.02 billion by the end of the month.

Both leading domestic and foreign banks participated in the drive, drawing foreign currency liquidity from global jurisdictions, including the United Kingdom, United States, Mexico, West Asia, Hong Kong, Singapore, and select African nations.

This surge follows direct instructions from Union Finance Minister Nirmala Sitharaman, who urged the MDs and CEOs of Public Sector Banks to utilize GIFT City IFSC's institutional infrastructure to execute RBI swap facilities and mobilize overseas funds.

Beyond the FCNR(B) facility, IBUs disbursed $11.62 billion in External Commercial Borrowings (ECBs) between April and August 2026. Monthly ECB disbursements more than doubled during this timeframe, climbing from $1.54 billion in April to $3.54 billion in August. Simultaneously, Indian banks raised $11.12 billion through bond listings on IFSC exchanges during the same period, with $9.17 billion raised in July and August alone.

In a statement posted on X, the IFSCA noted, “GIFT IFSC emerges as a strong and vibrant international banking hug, 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."

Highlighting the long-term impact of these milestones, K Rajaraman, Chairperson of IFSCA, stated, "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 added that IFSCA remains focused on sustaining a competitive, well-regulated, and globally connected ecosystem.