Union Finance Minister Nirmala Sitharaman on Monday reviewed 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), and asked banks to intensify outreach to the non-resident Indian (NRI) diaspora to sustain the momentum in foreign currency mobilisation.
The review meeting, held in New Delhi, was attended by 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.
During the meeting, 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.
According to the banks, strong interest has been witnessed from NRIs residing in Singapore, Hong Kong, West Asia, the United Kingdom, the United States and several other overseas markets.
Bank chiefs said they would build on the positive response through customised outreach strategies, including digital engagement with the NRI community, and expressed confidence that ECB mobilisation would gather stronger momentum during the third quarter of the current financial year (October-December 2026).
The lenders also highlighted the use of International Banking Units (IBUs) at the International Financial Services Centre (IFSC), GIFT City, to mobilise funds from multiple global jurisdictions. Sitharaman urged banks to maximise the use of the financial ecosystem and institutional infrastructure available at GIFT City.
The RBI Deputy Governor assured participants that the central bank was actively supporting banks in mobilising deposits and facilitating eligible borrowings, while its daily reporting framework was enabling transparent, real-time monitoring of progress.
Appreciating the encouraging initial response, 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.
The RBI had announced the special swap facilities in its Monetary Policy Statement on June 5, 2026. The measures include a US dollar-rupee forex swap facility at par 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.
Under the current framework, FCNR(B) deposits are eligible until September 30, 2026, while ECBs and OFCBs can avail the scheme until December 31, 2026.
