FM Sitharaman Reviews RBI Swap Schemes
Finance Minister urges banks to step up NRI outreach as FCNR(B), ECB and OFCB schemes gain strong response
GG News Bureau
New Delhi, 13th July: Union Finance Minister Nirmala Sitharaman on Monday reviewed the progress of the Reserve Bank of India’s (RBI) FCNR(B), External Commercial Borrowings (ECB) and Overseas Foreign Currency Borrowings (OFCB) swap initiatives and urged banks to intensify outreach among Non-Resident Indians (NRIs) to sustain the momentum of foreign currency mobilisation.
The review meeting 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 Ministry of Finance, the RBI and the Chief Economic Advisor.
During the meeting, banks informed the Finance Minister that the RBI’s swap facility schemes have received an encouraging response, with strong participation from NRIs in Singapore, Hong Kong, West Asia, the United Kingdom, the United States and other overseas regions.
Bank executives said attractive returns on FCNR(B) deposits, particularly five-year deposits, coupled with the temporary suspension of interest rate ceilings on fresh deposits, have boosted investor interest. Public sector banks also projected stronger mobilisation of External Commercial Borrowings during the third quarter of FY 2026-27.
The lenders highlighted that customised digital outreach campaigns and the use of International Banking Units (IBUs) at GIFT City are helping mobilise funds from multiple international jurisdictions.
Sitharaman asked banks to further strengthen engagement with the NRI community, introduce innovative deposit products and make full use of the financial ecosystem available at GIFT City to attract more foreign currency inflows.
The RBI Deputy Governor assured banks of continued regulatory support and said the central bank’s daily reporting framework enables transparent, real-time monitoring of the schemes’ progress.
According to the Finance Ministry, the broad-based participation of public and private sector banks, along with financial institutions, is helping strengthen India’s foreign exchange reserves and enhance the resilience of the country’s external sector amid global economic uncertainties.
The RBI had announced the swap facilities in its Monetary Policy Statement on June 5, 2026. The FCNR(B) deposit scheme will remain open until September 30, 2026, while eligible ECBs and OFCBs can avail the concessional swap facility until December 31, 2026.
