Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman today interacted with Managing Directors (MDs) and Chief Executive Officers (CEOs) of Public Sector Banks (PSBs) and Public Financial Institutions (PFIs) on the Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits, External Commercial Borrowings (ECBs) and Overseas Foreign Currency Borrowings (OFCBs) swap initiatives in New Delhi.

The Secretaries of the Department of Financial Services, the Department of Economic Affairs and the Department of Revenue, the Chief Economic Advisor, the Deputy Governor of the Reserve Bank of India (RBI), and other senior officers also attended the interaction.

During the interaction, the MDs and CEOs of the PSBs and PFIs apprised the Union Finance Minister of the progress under the RBI's swap facility schemes for FCNR(B) deposits, ECBs and OFCBs.

It was noted that these initiatives have received an encouraging response from the Indian diaspora abroad, with healthy interest across FCNR(B), ECBs and OFCBs. The MDs further 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 MDs and CEOs stated that there has been significant interest from NRIs residing in Singapore, Hong Kong, the West Asia, the United Kingdom, the United States and other overseas jurisdictions.

The MDs and CEOs outlined their plans to capitalise on the positive sentiment and accelerate deposit mobilisation during the remainder of the scheme period. They expressed confidence that ECB mobilisations would gather stronger traction during the third quarter of current FY (October-December 2026).

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

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

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

During the interaction, the Union Finance Minister appreciated the encouraging and enthusiastic initial response and 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 sustained and broad-based participation of public sector banks, 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.

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

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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SR/KMN