India’s Union Finance Minister Nirmala Sitharaman on Monday reviewed the progress of the Reserve Bank of India’s FCNR(B) deposits, External Commercial Borrowings (ECBs) and Overseas Foreign Currency Borrowings (OFCBs) swap initiatives during a meeting with Managing Directors and Chief Executive Officers of Public Sector Banks (PSBs) and Public Financial Institutions (PFIs) in New Delhi. Senior officials, including the Secretaries of the Departments of Financial Services, Economic Affairs and Revenue, the Chief Economic Advisor, and the RBI Deputy Governor, also attended the meeting.
Bank heads informed the Finance Minister that the RBI’s swap facility schemes have received an encouraging response, with strong interest from the Indian diaspora in FCNR(B) deposits, ECBs and OFCBs. Banks said they are offering attractive returns on FCNR(B) deposits, including five-year deposits, following the suspension of the interest rate ceiling on fresh FCNR(B) deposits under the scheme.
According to the banks, significant interest has been seen from non-resident Indians (NRIs) living in Singapore, Hong Kong, West Asia, the United Kingdom, the United States and other overseas locations. Public sector banks said they have introduced customised outreach strategies, including digital channels, to expand engagement with the NRI community, while FCNR(B) deposit mobilisation has continued to accelerate.
The banks also said their International Banking Units (IBUs) at the International Financial Services Centre (IFSC), GIFT City, Gujarat, are being used to mobilise funds from multiple jurisdictions, including the United Kingdom, the United States, West Asia, Hong Kong, Singapore and Southeast Asia. Sitharaman urged banks to make maximum use of the financial services and institutional infrastructure available at GIFT City. The RBI Deputy Governor said the central bank is actively supporting banks and financial institutions in mobilising deposits and eligible borrowings, with a daily reporting framework enabling transparent, real-time monitoring.
During the meeting, banks said they plan to build on the positive response and accelerate deposit mobilisation during the remaining period of the schemes. They also expressed confidence that ECB mobilisation would gain stronger momentum in the third quarter of FY 2026-27, covering October to December 2026. Sitharaman called on banks to further strengthen outreach to the NRI diaspora, introduce innovative deposit products and maintain the mobilisation momentum.
The RBI announced these schemes in the Monetary Policy Statement on June 5, 2026. They include a US Dollar-Rupee forex swap facility at par for fresh FCNR(B) deposits and a concessional swap facility for eligible ECBs and OFCBs to attract foreign capital, strengthen the balance of payments and encourage capital inflows. FCNR(B) deposits are eligible under the scheme until September 30, 2026, while ECBs and OFCBs remain eligible until December 31, 2026.
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