FM calls for enhanced NRI outreach to sustain foreign currency mobilisation momentum
Finance Minister Nirmala Sitharaman on Monday asked banks to enhance outreach to Non-Resident Indians (NRIs) for greater mobilisation of foreign currency deposits.
Chairing a review meeting with CEOs of public sector banks and financial institutions on the Foreign Currency Non-Resident (Bank), or FCNR(B) deposits, External Commercial Borrowings (ECBs) and Overseas Foreign Currency Borrowings (OFCBs) swap initiatives, Sitharaman appreciated the encouraging and enthusiastic initial response.
She 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, CEOs 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.
They outlined their plans to capitalise on the positive sentiment and accelerate deposit mobilisation during the remainder of the scheme period, it said.
They expressed confidence that ECB mobilisations would gather stronger traction during the third quarter (October-December 2026) of the current fiscal year, it said.
Public sector banks (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, it said.
They further noted that FCNR(B) deposit mobilisation has shown a clear accelerating trend, supported by attractive returns being offered by banks, it said.
