GIFT IFSC emerges as international banking hub with $52.82 bn FCNR(B) disbursals: Uday Kotak

GIFT IFSC is emerging as a growing international financial centre, with its banking units playing a significant role in channelling foreign-currency deposits into financing, Kotak Mahindra Bank founder Uday Kotak said.

GIFT IFSC is emerging as a growing international financial centre, with its banking units playing a significant role in channelling foreign-currency deposits into financing, Kotak Mahindra Bank founder Uday Kotak said. “This signifies GIFT’s emergence as a growing International Financial Centre,” Kotak said, highlighting the strong performance of GIFT IFSC banking units in funding deposits raised under the Reserve Bank of India’s special swap facility.

Kotak was reacting to a post by the International Financial Services Centres Authority (IFSCA) on X, which highlighted the performance of International Financial Services Centres (IFSC) Banking Units (IBUs) in supporting foreign-currency mobilisation and financing. “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,” Kotak said.

According to IFSCA, as of August 31, 20 IFSC Banking Units had sanctioned USD 54.02 billion under the RBI’s special swap facility for FCNR(B) deposits, of which USD 52.82 billion had been disbursed. The authority said GIFT IFSC was strengthening its role in supporting India’s foreign-currency mobilisation and cross-border financing requirements.

The IBUs also disbursed USD 11.62 billion through External Commercial Borrowings (ECBs) between April and August 2026. Monthly ECB disbursements increased from USD 1.54 billion in April to USD 3.54 billion in August, IFSCA said. During the same period, Indian banks raised USD 11.12 billion through bond listings on IFSC exchanges, including USD 9.17 billion during July and August.

IFSCA said these developments were helping build a deeper and more integrated international banking ecosystem by connecting global pools of capital with India’s financing requirements. Kotak’s comments came after the RBI reported that foreign exchange inflows under its special USD-INR swap facility had reached USD 136.38 billion as of August 31.

FCNR(B) deposits accounted for the bulk of these inflows at USD 127.23 billion, while Overseas Foreign Currency Borrowings contributed USD 5.26 billion and ECBs USD 3.89 billion. The RBI had introduced the special swap facility in June 2026 to cover inflows through FCNR(B) deposits, ECBs and OFCBs. The FCNR(B) window closed on August 31, while the facility for ECBs and OFCBs remains open until December 31.

The RBI said the figures were provisional and subject to final reporting, accounting and reconciliation. (ANI)