Finance Minister Nirmala Sitharaman on Sunday asked public sector banks to step up engagement with non-resident Indians (NRIs) and roll out innovative foreign currency deposit products to attract higher forex inflows, according to an official statement.
At a meeting with the heads of public sector banks, Sitharaman stressed the need to proactively reach out to overseas Indians and fully utilise the opportunities available through GIFT City for mobilising foreign currency resources.
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The finance minister's remarks come after the Reserve Bank of India unveiled a set of measures aimed at boosting foreign currency inflows and strengthening India's external sector through swap facilities linked to FCNR(B) deposits, External Commercial Borrowings (ECBs) and Overseas Foreign Currency Borrowings (OFCBs).
Bank executives told the finance minister that there has been encouraging interest in the RBI's swap schemes, particularly from NRIs based in the US, the UK, Singapore, Hong Kong and West Asia, the statement said.
According to the banks, foreign currency deposit mobilisation under the FCNR(B) route has gained traction, while ECB inflows are expected to gather pace in the third quarter of FY27.
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The RBI assured lenders of its full support in mobilising eligible deposits and overseas borrowings. It also encouraged broad participation in the swap facilities to strengthen India's foreign exchange reserves and overall external sector resilience.
The central bank's special FCNR(B) swap window will remain open until Sept. 30, while the facilities covering eligible ECBs and OFCBs will be available until Dec. 31.
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