FM calls for enhanced NRI outreach to sustain foreign currency mobilisation momentum

New Delhi: Finance Minister Nirmala Sitharaman on Monday asked banks to enhance outreach to Non Resident Indians (NRIs) for greater mobilisation of foreign currency deposits.

Chairing a review meeting with CEOs of public sector banks and financial institutions on the Foreign Currency Non-Resident (Bank), or FCNR(B) deposits, External Commercial Borrowings (ECBs) and Overseas Foreign Currency Borrowings (OFCBs) swap initiatives, Sitharaman appreciated the encouraging and enthusiastic initial response.

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She called upon banks to further intensify outreach to the NRI diaspora, introduce innovative deposit products and sustain the momentum of mobilisation during the remaining period of the schemes, the finance ministry said in a statement.

During the meeting, CEOs informed that banks are offering attractive returns on FCNR(B) deposits, including on five-year deposits, supported by the suspension of the interest rate ceiling on fresh FCNR(B) deposits under the scheme.

The CEOs stated that there has been significant interest from NRIs residing in Singapore, Hong Kong, West Asia, the United Kingdom, the United States and other overseas jurisdictions.

They outlined their plans to capitalise on the positive sentiment and accelerate deposit mobilisation during the remainder of the scheme period, it said.

They expressed confidence that ECB mobilisations would gather stronger traction during the third quarter (October-December 2026) of the current fiscal year, it said.

Public sector banks (PSBs) also informed that they have put in place customised outreach strategies, including digital channels, to engage with the non-resident Indian (NRI) diaspora and enhance deposit mobilisation, it said.

They further noted that FCNR(B) deposit mobilisation has shown a clear accelerating trend, supported by attractive returns being offered by banks, it said.

The banks also informed during the interaction that the International Banking Units (IBUs) at the International Financial Services Centre (IFSC), GIFT City, Gujarat, are being utilised to leverage fund mobilisation from multiple jurisdictions, including the United Kingdom, the United States, the West Asia, Hong Kong, Singapore and Southeast Asia.

Sitharaman also exhorted banks to maximise utilisation of financial services and institutional infrastructure available at GIFT City.

During the discussion, a senior RBI official assured that the central bank is actively supporting banks and financial institutions in mobilising deposits and facilitating eligible borrowings.

The meeting was also attended by senior officials, including secretaries under the finance ministry.

It was also noted that the robust daily reporting framework instituted by the RBI has enabled transparent, real-time monitoring of progress across participating institutions.

The sustained and broad-based participation of PSBs, private sector banks and public financial institutions underscores the effectiveness of the swap facilities in mobilising foreign currency inflows, reinforcing India's foreign exchange reserves and strengthening the resilience of the external sector amid global uncertainty, it said.

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The schemes, announced by RBI Governor Sanjay Malhotra in the Monetary Policy Statement of June 5, 2026, comprise a US dollar-rupee forex swap facility at par with fresh FCNR(B) deposits and a concessional swap facility for eligible ECBs and OFCBs. These schemes are aimed at attracting foreign capital, strengthening the balance of payments and incentivising capital inflows.

The move came at a time when FCNR(B) deposit inflows weakened sharply, with net inflows dropping to just USD 946 million in FY26 from USD 7.1 billion in FY25.

FCNR(B) deposits are eligible under the scheme until September 30, 2026, while ECBs and OFCBs are eligible until December 31, 2026.

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