The International Financial Services Centres Authority announced on 2 September 2026 that GIFT City’s banking operations have grown significantly, channelling foreign currency into India through multiple financing routes. The development reflects the Reserve Bank’s push to mobilise overseas funds through its special facility for foreign currency deposits and other international borrowing mechanisms.
The Numbers and Activity
As of 31 August 2026, twenty banking units operating in GIFT City have received approval to raise USD 54.02 billion under the RBI’s swap scheme for Non-Resident External deposits. Of this amount, USD 52.82 billion has already been made available. The pace of approvals has accelerated sharply—rising from USD 28.60 billion on 14 August to USD 54.02 billion by month-end.
Beyond this swap facility, the banking units have also been active in other financing channels. During the five-month period from April through August 2026, they disbursed USD 11.62 billion through External Commercial Borrowings. Monthly disbursements grew from USD 1.54 billion in April to USD 3.54 billion in August. Indian banks have additionally listed USD 11.12 billion in bonds on GIFT City exchanges during the same period, with USD 9.17 billion of that total coming in July and August alone.
The participating banks include both major Indian and foreign financial institutions. Capital has been sourced from multiple countries including the United Kingdom, United States, Mexico, West Asia, Hong Kong, Singapore and several African nations.
What this means for you
GIFT City is functioning as a channel through which Indian companies and banks can access cheaper foreign borrowing and investors worldwide can invest in Indian financial instruments. The growth signals that India’s overseas fund-raising costs are falling and its ability to attract global capital is strengthening. For ordinary savers and depositors, the larger flow of foreign currency into the banking system supports the nation’s foreign exchange reserves and the stability of the rupee.