New Delhi: Sitharaman Urges Public Sector Banks To Woo Nris, Launch Innovative Forex Deposit Products
“They expressed confidence that ECB mobilisations would gather stronger traction during the third quarter (October-December 2026) of the current fiscal year”: Reports
NEW DELHI: Union finance minister Nirmala Sitharaman on Monday asked public sector banks (PSBs) to step up engagement with non-resident Indians (NRIs) and roll out innovative foreign currency deposit products to attract higher forex inflows. The finance minister’s remarks come after the Reserve Bank of India (RBI) unveiled a set of measures aimed at boosting foreign currency inflows and strengthening India’s external sector through swap facilities linked to FCNR (B) deposits, external commercial borrowings (ECBs) and overseas foreign currency borrowings (OFCBs).
Chairing a review meeting with the heads of public sector banks, Sitharaman also stressed the need to proactively reach out to overseas Indians and fully utilise the opportunities available through GIFT City for mobilising foreign currency resources. “The finance minister called upon banks to further intensify outreach to the NRI diaspora, introduce innovative deposit products and sustain the momentum of mobilisation during the remaining period of the schemes,” the finance ministry said in a statement.
During the meeting, the ministry also said that CEOs are informed that banks are offering attractive returns on FCNR(B) deposits, including on five-year deposits, supported by the suspension of the interest rate ceiling on fresh FCNR(B) deposits under the scheme. “The CEOs stated that there has been significant interest from NRIs residing in Singapore, Hong Kong, West Asia, the United Kingdom, the United States and other overseas jurisdictions,” the ministry said.
All the PSU bank chiefs outlined their plans to capitalise on the positive sentiment and accelerate deposit mobilisation during the remainder of the scheme period. “They expressed confidence that ECB mobilisations would gather stronger traction during the third quarter (October-December 2026) of the current fiscal year,” the statement said.
The PSBs also informed that they have put in place customised outreach strategies, including digital channels, to engage with the non-resident Indian (NRI) diaspora and enhance deposit mobilisation. “They further noted that FCNR(B) deposit mobilisation has shown a clear accelerating trend, supported by attractive returns being offered by banks,” it said.
The banks also informed during the interaction that the International Banking Units (IBUs) at the International Financial Services Centre (IFSC), GIFT City, Gujarat, are being utilised to leverage fund mobilisation from multiple jurisdictions, including the United Kingdom, the United States, the West Asia, Hong Kong, Singapore and Southeast Asia.
