Finance Minister Nirmala Sitharaman on Sunday asked public sector banks to strengthen engagement with non-resident Indians (NRIs) and introduce innovative foreign currency deposit products to attract higher foreign exchange inflows.
According to an official statement, Sitharaman made the remarks during a meeting with the heads of public sector banks. She urged lenders to proactively reach out to overseas Indians and make full use of the opportunities available through GIFT City to mobilise foreign currency resources.
The meeting comes after the Reserve Bank of India (RBI) announced measures to boost foreign currency inflows and strengthen India's external sector through swap facilities linked to Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits, External Commercial Borrowings (ECBs) and Overseas Foreign Currency Borrowings (OFCBs).
Bank executives told the finance minister that the RBI's swap schemes have received encouraging interest, particularly from NRIs in the United States, the United Kingdom, Singapore, Hong Kong, and West Asia.
According to the banks, mobilisation of foreign currency deposits under the FCNR(B) route has gained momentum, while ECB inflows are expected to increase in the third quarter of FY27.
The RBI assured banks of its support in mobilising eligible deposits and overseas borrowings and encouraged wider participation in the swap facilities to strengthen India's foreign exchange reserves and the external sector.
The RBI's special FCNR(B) swap window will remain open until September 30, while the facilities for eligible ECBs and OFCBs will be available until December 31.