Archive · 2 Sep 2026
IFSC Banking Units Disburse $52.82 Billion Against FCNR(B) Deposits
Some special banking branches in GIFT City lend money in foreign currencies.
They use FCNR(B) deposits, which are deposits made by people who live outside India.
By August 31, 2026, these branches had lent about $52.82 billion.
They had approved about $54.02 billion in loans.
They also provided $11.62 billion through external commercial borrowings between April and August.
Reserve Bank of India data said $127.2 billion entered through a special deposit-swap program.
The rules can let banks lend up to nine dollars for every one dollar deposited.
This means the banks could potentially support more than $110 billion in loans, although that is a lending capacity rather than a reported amount already disbursed.
IFSC Banking Units in GIFT City disbursed about $52.82 billion in loans against FCNR(B) deposits by August 31, 2026.
The units had sanctioned approximately $54.02 billion in loans under the scheme, according to an official source.
External commercial borrowings disbursed by the units totaled $11.62 billion between April and August.
Reserve Bank of India data showed $127.2 billion had entered through the concessional FCNR(B) swap window.
The structure allows banks to lend up to nine times the value of eligible deposits, potentially enabling more than $110 billion in lending.
- Who
- IFSC Banking Units operating in GIFT City and banks’ overseas branches and subsidiaries.
- What
- The units disbursed about $52.82 billion in loans against FCNR(B) deposits and sanctioned about $54.02 billion.
- When
- The loan figures were reported as of August 31, 2026; external commercial borrowing figures covered April through August. The report was published September 2, 2026.
- Where
- GIFT City’s International Financial Services Centre and related overseas branches and subsidiaries.
- Why
- To leverage FCNR(B) deposits and extend loans using the permitted borrowing structure.
- Loans disbursed
- About $52.82 billion as of August 31, 2026
- Loans sanctioned
- About $54.02 billion as of August 31, 2026
- External commercial borrowings
- $11.62 billion disbursed from April through August
- FCNR(B) swap-window inflows
- $127.2 billion, according to Reserve Bank of India data
- Leverage ratio
- Banks can lend up to nine times the value of eligible deposits
- Potential lending capacity
- More than $110 billion, according to the report
- Publication date
- September 2, 2026