Business News | FM Nirmala Sitharaman Asks Banks to Step Up NRI Outreach as FCNR(B), ECB, OFCB Schemes Draw Strong Interest
Get latest articles and stories on Business at LatestLY. Union Finance Minister Nirmala Sitharaman on Monday asked Public Sector Banks and Public Financial Institutions to intensify outreach to the NRI diaspora and sustain the momentum of foreign currency mobilisation under RBI's swap schemes.
New Delhi [India], July 13 (ANI): Union Finance Minister Nirmala Sitharaman on Monday asked Public Sector Banks and Public Financial Institutions to intensify outreach to the NRI diaspora and sustain the momentum of foreign currency mobilisation under RBI's swap schemes.
She was interacting with MDs and CEOs of PSBs and PFIs in New Delhi on "Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits, External Commercial Borrowings (ECBs) and Overseas Foreign Currency Borrowings (OFCBs) swap initiatives." The Secretaries of DFS, DEA and Revenue, Chief Economic Advisor, RBI Deputy Governor and other senior officials also attended.
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Banks reported encouraging uptake. "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 Ministry of Finance said in a press release.
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. Banks said they are offering attractive returns, including on five-year FCNR(B) deposits, supported by the suspension of the interest rate ceiling on fresh FCNR(B) deposits under the scheme.
Officials outlined plans to build on this. 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 also expressed confidence that ECB mobilisations would gather stronger traction during the third quarter of current FY (October-December 2026).
According to the press release, 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 added that FCNR(B) deposit mobilisation has shown a clear accelerating trend, supported by attractive returns being offered by banks.
GIFT City is being used to tap global funds. "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 said adding she "exhorted the banks to maximise utilisation of financial services and institutional infrastructure available at GIFT City."
The RBI Deputy Governor assured that the central bank is actively supporting banks and financial institutions in mobilising deposits and facilitating eligible borrowings, the press release said. 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 schemes were announced by the RBI Governor on June 5, 2026. They include a US Dollar-Rupee forex swap facility at par for fresh FCNR(B) deposits and a concessional swap for eligible ECBs and OFCBs. "FCNR(B) deposits are eligible under the scheme until September 30, 2026, while ECBs and OFCBs are eligible until December 31, 2026."
The ministry said the participation reflects resilience. 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. (ANI)
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