FM Asks To Step Up NRI Outreach To Boost Foreign Currency Deposits

The Union Minister of Finance, Nirmala Sitharaman, has asked banks to strengthen their outreach to non-resident Indians (NRIs) and introduce new deposit products to increase foreign currency inflows under the Reserve Bank of India's (RBI) temporary forex swap schemes.

The direction came during a review meeting with chief executives of public sector banks and financial institutions on the progress of Foreign Currency Non-Resident (Bank), or FCNR(B), deposits, External Commercial Borrowings (ECBs) and Overseas Foreign Currency Borrowings (OFCBs) swap facilities.

According to a statement issued by the finance ministry, Sitharaman has asked banks to maintain the pace of deposit mobilisation during the remaining period of the schemes by expanding engagement with the NRI community and offering suitable deposit products.

Banks See Growing Interest From NRIs

According to a PTI report, bank executives have told the finance minister that they are offering attractive returns on FCNR(B) deposits, including five-year deposits, after the RBI temporarily removed the interest rate ceiling on fresh FCNR(B) deposits under the scheme.

According to them, NRIs from Singapore, Hong Kong, West Asia, the UK, the US, and other overseas locations have shown strong interest in these deposits. Banks have also shared plans to build on this response and increase deposit mobilisation over the coming months.

Public sector banks have mentioned that they have adopted customised outreach strategies, including digital channels, to connect with the NRI community. They also informed the government that FCNR(B) deposit mobilisation has picked up in recent weeks.

Banks have also added that they are using International Banking Units (IBUs) at GIFT City in Gujarat to raise funds from multiple overseas markets. Sitharaman also asked lenders to make greater use of the financial services and institutional infrastructure available at GIFT City.

RBI Schemes To Stay Open For Limited Period

During the meeting, a senior RBI official had mentioned that the central bank is supporting banks and financial institutions in mobilising deposits and facilitating eligible borrowings. They also stated that the RBI's daily reporting system is helping track the progress of participating institutions in real time.

The swap schemes were announced by RBI Governor Sanjay Malhotra in the monetary policy statement on June 5, 2026. They include a US dollar-rupee swap facility at par for fresh FCNR(B) deposits and a concessional swap facility for eligible ECBs and OFCBs.

The schemes are intended to attract foreign capital, support India's balance of payments, strengthen foreign exchange reserves and improve the country's ability to deal with global financial uncertainties.

The review comes after FCNR(B) deposit inflows weakened sharply. Net inflows fell to USD 946 million in FY26 from USD 7.1 billion in FY25.

Fresh FCNR(B) deposits are eligible under the RBI scheme until September 30, 2026, while eligible ECBs and OFCBs can use the concessional swap facility until December 31, 2026.