Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman interacts with Bank MDs and CEOs on FCNR(B), ECB and OFCB swap initiatives in New Delhi

  Union Finance Minister calls for enhanced NRI outreach to sustain mobilisation momentum Banks report strong interest under RBI's FCNR(...

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Union Finance Minister calls for enhanced NRI outreach to sustain mobilisation momentum

Banks report strong interest under RBI's FCNR(B), ECB and OFCB Swap Schemes

PSBs project stronger ECB mobilisation in the third quarter of FY 2026-27; Broad-based participation reinforces India's external sector resilience

New Delhi..

Asal Baat news.

Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman today interacted with Managing Directors (MDs) and Chief Executive Officers (CEOs) of Public Sector Banks (PSBs) and Public Financial Institutions (PFIs) on the Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits, External Commercial Borrowings (ECBs) and Overseas Foreign Currency Borrowings (OFCBs) swap initiatives in New Delhi.

The Secretaries of the Department of Financial Services, the Department of Economic Affairs and the Department of Revenue, the Chief Economic Advisor, the Deputy Governor of the Reserve Bank of India (RBI), and other senior officers also attended the interaction.

During the interaction, the MDs and CEOs of the PSBs and PFIs apprised the Union Finance Minister of the progress under the RBI's swap facility schemes for FCNR(B) deposits, ECBs and OFCBs.

It was noted that these initiatives have received an encouraging response from the Indian diaspora abroad, with healthy interest across FCNR(B), ECBs and OFCBs. The MDs further 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 MDs and CEOs stated that there has been significant interest from NRIs residing in Singapore, Hong Kong, the West Asia, the United Kingdom, the United States and other overseas jurisdictions.

The MDs and CEOs 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 of current FY (October-December 2026).

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.