GIFT City IFSC banks sanction $54 bn under RBI swap facility

The pace accelerated further in August. Sanctions reached $24.70 billion as of August 7, $28.60 billion by August 14 and $37.26 billion by August 21. By August 31, the aggregate amount sanctioned had surged to $54.02 billion, with 20 IBUs participating in the scheme.

The report also shows that actual disbursements have closely followed sanctions. As of August 31, the total amount disbursed by IBUs under the scheme stood at around $52.82 billion, against sanctioned loans of $54.02 billion.

The RBI’s swap facility for FCNR(B) deposits and External Commercial Borrowings (ECBs) is aimed at facilitating access to foreign currency funding through the banking infrastructure at GIFT IFSC.

Public sector banks have also been directed to leverage the financial services ecosystem and institutional infrastructure available at the IFSC for effective implementation of the facility.

The latest figures indicate that the facility has become a significant channel for foreign currency funding within a relatively short period. The number of participating IBUs has increased from 14 in mid-July to 20 by the end of August.

The report also provides details on ECB activity through IBUs. ECBs disbursed by IBUs totalled $11.62 billion during April-August 2026, indicating substantial demand for foreign currency borrowings through the IFSC route.

In another indication of growing activity at GIFT IFSC, Indian banks raised $11.12 billion through bonds issued on IFSC exchanges between April and August 2026. Details of these bond issuances have been included in an annexure to the status report.

Taken together, the figures point to a rapid expansion in foreign currency financing and capital-market activity at GIFT IFSC. The sharp increase in sanctions and disbursements under the RBI’s FCNR(B) swap facility, alongside ECB disbursements and bond mobilisation, highlights the growing role of GIFT City as a hub for international banking and foreign currency funding.