RBI Forex Swap Facility: Veteran banker Uday Kotak on Thursday, September 3, highlighted the growing role of GIFT IFSC in India’s international banking ecosystem, noting that banking units at the International Financial Services Centre have funded $52 billion of the $127 billion FCNR(B) deposits raised under the Reserve Bank of India’s special swap facility.
Kotak posted on X, “Excellent performance by GIFT IFSC banking units funding $ 52 bn of the $ 127 bn FCNR( B) deposits raised under RBI swap facility. This signifies GIFT’s emergence as a growing International Financial Centre,”
He made the remarks while reposting a September 2 post by the International Financial Services Centres Authority (IFSCA), which highlighted key milestones achieved by GIFT IFSC in foreign-currency mobilisation and cross-border financing.
$52.82 billion disbursed under swap facility
According to IFSCA, as of August 31, 2026, 20 IFSC Banking Units (IBUs) had sanctioned $54.02 billion under the RBI’s special swap facility for FCNR(B) deposits. Of this amount, $52.82 billion had been disbursed.
The figures underline the increasing role of banking units operating from GIFT IFSC in channelising foreign-currency resources towards India’s financing requirements.
The FCNR(B) deposit facility allows banks to raise foreign-currency deposits from non-resident Indians, while the RBI’s swap facility provides a mechanism to support foreign-currency mobilisation.
ECB disbursements rise between April and August
IFSCA also pointed to a rise in External Commercial Borrowings (ECBs) disbursed by IFSC Banking Units during the April-August 2026 period.
IBUs disbursed $11.62 billion in ECBs during the five-month period, with monthly disbursements rising from $1.54 billion in April to $3.54 billion in August.
The increase indicates a growing role for GIFT IFSC-based banking units in meeting the foreign-currency funding requirements of Indian companies and businesses.
Indian banks raise $11.12 billion through IFSC exchanges
During the same April-August period, Indian banks raised $11.12 billion through bond listings on IFSC exchanges, according to IFSCA.
A significant portion of the fundraising came during the July-August period, when banks raised $9.17 billion through bond listings.
IFSCA said the milestones demonstrated the emergence of GIFT IFSC as a “deep, diversified and increasingly integrated international banking ecosystem”, connecting global pools of capital with India’s financing requirements.
GIFT IFSC’s international financial centre ambitions
GIFT IFSC, located in Gujarat International Finance Tec-City, is being developed as an international financial hub connecting Indian businesses and financial institutions with global markets and investors.
The IFSCA is the unified regulator for financial products, financial services and financial institutions operating in India’s International Financial Services Centres. It was established under the IFSCA Act, 2019.
Kotak’s remarks come as GIFT IFSC seeks to strengthen its position as a global financial centre and expand its role in attracting international capital for India.
