Sitharaman Urges Banks to Boost Foreign Currency NRI Deposits

Union Finance Minister Nirmala Sitharaman directed public sector banks and financial institutions on July 13, 2026, to intensify outreach to the Non-Resident Indian (NRI) diaspora. During a review meeting in New Delhi, she urged bank executives to introduce innovative deposit products and utilize International Banking Units at GIFT City in Gujarat to maximize fund mobilization from the United States, United Kingdom, Singapore, and Hong Kong.

The initiative focuses on Reserve Bank of India (RBI) swap facility schemes announced on June 5, 2026. These include a US Dollar-Rupee forex swap for Foreign Currency Non-Resident (Bank) deposits, alongside concessional swaps for External Commercial Borrowings (ECBs) and Overseas Foreign Currency Borrowings (OFCBs). The push aims to support the rupee and strengthen forex reserves following a sharp decline in FCNR(B) net inflows, which dropped from $7.1 billion in FY25 to $946 million in FY26.

Bank executives reported strong interest in the schemes, noting accelerating deposit trends following the suspension of interest rate ceilings on fresh FCNR(B) accounts. Eligibility for FCNR(B) deposits continues until September 30, 2026, while ECBs and OFCBs remain eligible until December 31, 2026.