Union Finance Minister Nirmala Sitharaman asked banks to step up efforts to attract more foreign currency deposits from Non-Resident Indians (NRIs). She also urged lenders to launch innovative deposit products to sustain the momentum under the Reserve Bank of India’s (RBI) swap facility schemes.
The Finance Minister reviewed the progress of Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits, External Commercial Borrowings (ECBs) and Overseas Foreign Currency Borrowings (OFCBs) with Managing Directors and Chief Executive Officers of Public Sector Banks (PSBs) and Public Financial Institutions (PFIs). Senior officials from the RBI and key government departments also attended the meeting.
Banks See Strong Response from NRIs
Banks informed the Finance Minister that the schemes have received an encouraging response. They reported strong interest from NRIs in Singapore, Hong Kong, West Asia, the United Kingdom, and the United States.
Lenders said attractive returns on FCNR(B) deposits have boosted participation. The RBI’s decision to suspend the interest rate ceiling on fresh FCNR(B) deposits has also supported inflows. Banks added that deposit mobilisation has picked up steadily through digital campaigns and targeted outreach.
They also expressed confidence that ECB mobilisation will improve further during the October to December quarter of the current financial year.
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Focus on GIFT City and Foreign Currency Inflows
Banks said they are using International Banking Units (IBUs) at GIFT City to raise funds from global markets. These include the UK, the US, West Asia, Hong Kong, Singapore, and Southeast Asia. Sitharaman asked lenders to make greater use of GIFT City’s financial ecosystem.
The RBI Deputy Governor assured banks of continued support. He said the central bank is helping financial institutions mobilise deposits and eligible borrowings. He also noted that the RBI’s daily reporting framework allows real-time monitoring of the schemes.
The RBI announced the swap facilities in its Monetary Policy Statement on June 5, 2026. The schemes aim to attract foreign capital, strengthen India’s foreign exchange reserves, and improve the country’s external sector resilience.
