NE ECONOMIC BUREAU
NEW DELHI, JULY 13
Positioning Gujarat’s GIFT City at the heart of India’s global capital mobilisation strategy, Finance Minister Nirmala Sitharaman on Monday called upon banks to maximise the International Financial Services Centre’s world-class banking ecosystem while intensifying outreach to the global Indian diaspora, as lenders reported an encouraging response to the Reserve Bank of India’s special foreign currency swap initiatives.
👉 Union Minister for Finance & Corporate Affairs Smt. @nsitharaman 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… pic.twitter.com/t6tZs4G87H
— Ministry of Finance (@FinMinIndia) July 13, 2026
At a high-level review meeting with Managing Directors and Chief Executive Officers of Public Sector Banks (PSBs) and Public Financial Institutions (PFIs), Sitharaman assessed the progress of the RBI’s Foreign Currency Non-Resident (Bank) [FCNR(B)] Deposit, External Commercial Borrowing (ECB) and Overseas Foreign Currency Borrowing (OFCB) swap schemes aimed at attracting foreign capital and strengthening India’s external sector.
- Finance Minister reviews RBI’s FCNR(B), ECB and OFCB swap initiatives as banks report robust response from the global Indian diaspora
- GIFT City’s International Banking Units emerge as a strategic gateway for mobilising foreign currency from major global financial centres
- Public sector banks foresee stronger External Commercial Borrowing momentum in Q3 FY2026-27, reinforcing India’s external financing strength
- Banks roll out targeted NRI outreach and innovative deposit products as RBI assures continued policy support and real-time monitoring
- Broad-based participation expected to strengthen forex reserves, balance of payments stability and India’s resilience amid global economic headwinds
The meeting was attended by senior officials from the Department of Financial Services, Department of Economic Affairs, Department of Revenue, the Chief Economic Advisor, the Deputy Governor of the Reserve Bank of India (RBI) and other senior policymakers.
Banks informed the Finance Minister that the RBI’s initiatives have generated strong interest among Non-Resident Indians (NRIs), particularly in Singapore, Hong Kong, West Asia, the United Kingdom, the United States and other overseas markets, reflecting growing confidence in India’s macroeconomic fundamentals.
Lenders said the suspension of the interest-rate ceiling on fresh FCNR(B) deposits has enabled them to offer attractive returns, including on five-year deposits, thereby accelerating foreign currency mobilisation.
A key highlight of the review was the growing role of International Banking Units (IBUs) at GIFT City, Gujarat, which are being extensively utilised to mobilise funds from leading global financial centres. Banks informed the Finance Minister that GIFT City’s integrated international financial ecosystem is helping attract foreign currency inflows from jurisdictions including the United States, the United Kingdom, West Asia, Hong Kong, Singapore and Southeast Asia.
Recognising GIFT City’s strategic importance in India’s international financial architecture, Sitharaman urged banks to fully leverage the financial services ecosystem and institutional infrastructure available at GIFT City to further expand overseas fund mobilisation.
Public sector banks also informed the Finance Minister that they have launched customised NRI engagement strategies, combining digital outreach with targeted overseas campaigns to strengthen deposit mobilisation. They expressed confidence that External Commercial Borrowings (ECBs) would witness stronger traction during the third quarter of FY2026-27.
Appreciating the enthusiastic response to the RBI’s initiatives, Sitharaman urged banks to sustain the momentum by broadening their engagement with overseas Indians.
“Banks should 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 RBI Deputy Governor assured banks that the central bank continues to actively support deposit mobilisation and eligible borrowings, adding that its robust daily reporting framework enables transparent, real-time monitoring across participating institutions.
According to the Finance Ministry, the broad-based participation of public sector banks, private sector banks and public financial institutions underscores the effectiveness of the RBI’s swap facilities in attracting foreign currency inflows, reinforcing India’s foreign exchange reserves, strengthening the balance of payments, and enhancing the resilience of the country’s external sector amid global economic uncertainty.
Announced in the RBI’s Monetary Policy Statement of June 5, 2026, the package includes a US Dollar-Rupee forex swap facility at par for fresh FCNR(B) deposits and concessional swap facilities for eligible ECBs and OFCBs.
Under the current framework, FCNR(B) deposits remain eligible until September 30, 2026, while ECBs and OFCBs are eligible until December 31, 2026.
