New Delhi: Union Finance Minister Nirmala Sitharaman has asked banks to step up engagement with Non-Resident Indians (NRIs) after reviewing the progress of the Reserve Bank of India’s FCNR(B), External Commercial Borrowing (ECB) and Overseas Foreign Currency Borrowing (OFCB) swap initiatives. The review meeting in New Delhi highlighted encouraging participation from global investors and the Indian diaspora, with banks reporting growing momentum under the schemes.
The meeting brought together Managing Directors and Chief Executive Officers of Public Sector Banks (PSBs) and Public Financial Institutions (PFIs), along with senior officials from the Ministry of Finance and the Reserve Bank of India, to assess the response to the RBI’s recently introduced swap facilities.
According to the banks, the initiatives have generated healthy interest among NRIs, particularly those based in Singapore, Hong Kong, West Asia, the United Kingdom, the United States and several other overseas markets. Financial institutions reported strong traction for Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits, supported by attractive returns, including five-year deposit options made possible after the suspension of the interest rate ceiling under the scheme.
Public sector banks also informed the Finance Minister that they expect mobilisation through External Commercial Borrowings to gather greater momentum during the third quarter of the current financial year. Institutions have introduced customised outreach programmes and expanded digital engagement to strengthen connections with the global Indian community and encourage higher participation.
The discussion also highlighted the role of International Banking Units (IBUs) operating at GIFT City in Gujarat. Banks are leveraging these facilities to mobilise funds from multiple international markets, including the UK, US, West Asia, Hong Kong, Singapore and Southeast Asia, while making greater use of the financial infrastructure available at the International Financial Services Centre (IFSC).
During the review, RBI officials reaffirmed that the central bank is actively supporting financial institutions in mobilising deposits and facilitating eligible overseas borrowings. A robust reporting framework has also been established to monitor the progress of participating institutions in real time.
Concluding the meeting, Sitharaman acknowledged the encouraging early response to the schemes and urged banks to intensify outreach efforts, introduce innovative deposit products and maintain the momentum throughout the remaining operational period. The RBI’s swap facilities remain available until September 30, 2026 for fresh FCNR(B) deposits, while eligible ECBs and OFCBs can access the schemes until December 31, 2026.
Source: This article is based on an official press release issued by the Press Information Bureau, Ministry of Finance, Government of India
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