New Delhi, Jul 13 (ANI): Union Finance Minister Nirmala Sitharaman chairs a review meeting of Public Sector Banks (PSBs), in New Delhi on Monday. (PIB Photo Gallery/ANI Photo)
| Photo Credit:
Finance Minister Nirmala Sitharaman on Monday urged public sector banks (PSBs) to step up outreach to Non-Resident Indians (NRIs) to sustain the momentum in foreign currency inflows, even as lenders said fundraising through External Commercial Borrowings (ECBs) is expected to gather pace in the October-December quarter.Sitharaman chaired a meeting of Managing Directors and Chief Executive Officers of PSBs and public financial institutions (PFIs) to review progress under the Foreign Currency Non-Resident (Bank) [FCNR(B)] deposit, External Commercial Borrowing (ECB) and Overseas Foreign Currency Borrowing (OFCB) swap schemes. While the government has not announced an official mobilisation target, the measures are expected to attract up to $50 billion."The Union Finance Minister appreciated the encouraging initial response and called on banks to intensify outreach to the NRI diaspora, introduce innovative deposit products and sustain the mobilisation momentum during the remaining period of the schemes," the Finance Ministry said in a statement.FCNR(B) deposits can be mobilised under the scheme until September 30, 2026, while the window for ECBs and OFCBs remains open until December 31, 2026.Healthy responseThe ministry said the schemes have drawn encouraging interest from the Indian diaspora, with healthy participation across FCNR(B) deposits, ECBs and OFCBs. Bank chiefs told the Finance Minister they were offering attractive returns on FCNR(B) deposits, including five-year tenures, helped by the suspension of the interest rate ceiling on fresh FCNR(B) deposits.Banks reported strong interest from NRIs in Singapore, Hong Kong, West Asia, the UK, the US and other overseas markets. They said targeted outreach through digital channels and customised engagement strategies had helped accelerate deposit mobilisation.Lenders also informed the meeting that International Banking Units (IBUs) at GIFT City were being used to mobilise funds from multiple jurisdictions. Sitharaman urged banks to make full use of the financial and institutional infrastructure available at GIFT City, the ministry said.The bank chiefs outlined plans to build on the positive response and accelerate deposit mobilisation during the remaining tenure of the schemes. They also expressed confidence that ECB mobilisation would gain stronger traction in the third quarter of the current financial year.During the meeting, RBI Deputy Governor Swaminathan J assured participants that the central bank would continue to support banks and financial institutions in mobilising deposits and facilitating eligible overseas borrowings.Published on July 13, 2026
