The veteran, who turns 73 next month, was given charge of Rahul Dravid's side a day after South African Graham Ford turned down India's offer to coach the team.
Borde, a top order batsman and widely respected as a shrewd thinker of the game, played the last of his 55 Tests in 1969 and captained India in one match.
He later served as chief selector from 1999-2002, but was currently leading a retired life at his home in the western city of Pune.
Borde will manage the Indian team for the five one-dayers against Ireland, South Africa and Pakistan in Belfast and Glasgow between June 23 and July 3 and the subsequent full tour of England.
He will be assisted by bowling coach Venkatesh Prasad and fielding coach Robin Singh during the three-month tour.
The Board of Control for Cricket in India (BCCI) will continue their search for a full time coach after Ford's refusal to take up the US$300,000 a year job.
"Borde will manage the team in England as we look for a coach," said BCCI secretary Niranjan Shah after a board meeting here.
Ford, a former South African coach, said on Monday he preferred to continue as director of cricket with English county Kent after being offered the India job on Saturday.
India are seeking a permanent coach to succeed former Australian captain Greg Chappell, who quit in April after India's first round exit from the World Cup.
Former captain-turned-commentator Ravi Shastri, who served as interim coach for last month's tour of Bangladesh, declined to continue citing media commitments.
Ford's snub has shaken the BCCI, a rich and powerful player on the world stage with ambitions of making its current president Sharad Pawar the International Cricket Council chief in 2008.
The BCCI are unlikely to go back to former England spinner and current Middlesex director John Emburey, who was also interviewed on Saturday and rejected.