On reviewing the progress of the Reserve Bank of India’s (RBI) swap facility schemes for Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits, External Commercial Borrowings (ECBs) and Overseas Foreign Currency Borrowings (OFCBs), Union Finance Minister Nirmala Sitharaman has asked banks to intensify outreach to the NRI diaspora. The move was made at a review meeting in New Delhi to sustain the momentum in foreign currency mobilisation.

The meeting saw the participation of Managing Directors and Chief Executive Officers of Public Sector Banks (PSBs) and Public Financial Institutions (PFIs), along with senior officials from the Department of Financial Services, the Department of Economic Affairs, the Department of Revenue, the RBI and the Chief Economic Advisor.

Banks informed the Finance Minister that the RBI’s swap initiatives had received an encouraging response from overseas Indians, with healthy interest in FCNR(B) deposits, ECBs and OFCBs. They said attractive returns on FCNR(B) deposits, particularly five-year deposits, had boosted investor interest following the RBI’s decision to suspend the interest rate ceiling on fresh FCNR(B) deposits under the scheme.

The RBI announced the special swap facilities in its Monetary Policy Statement on June 5, 2026. The measures included a US dollar-rupee forex swap facility for fresh FCNR(B) deposits and concessional swap facilities for eligible ECBs and OFCBs to attract foreign capital, strengthen India’s balance of payments and bolster foreign exchange reserves.

In addition, banks said a strong interest was witnessed from NRIs residing in Singapore, Hong Kong, the Middle East, the UK, the US, and many overseas markets.

Bank officials said they would build on the positive response through customised outreach strategies, including digital engagement with the NRI community. They expressed confidence that ECB mobilisation would gather stronger momentum during the third quarter of the current financial year (October-December 2026).

Sitharaman asked banks to further strengthen engagement with the NRI diaspora, introduce innovative deposit products and maintain the pace of mobilisation during the remaining tenure of the schemes. – editor@nrifocus.com