FM Sitharaman Reviews RBI Swap Schemes as Banks Report Strong FCNR(B) Inflows

New Delhi, Jul 14 (KNN) Union Finance Minister Nirmala Sitharaman on Monday reviewed the progress of the Reserve Bank of India's (RBI) swap facility schemes for Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits, External Commercial Borrowings (ECBs) and Overseas Foreign Currency Borrowings (OFCBs) during a meeting with Managing Directors and Chief Executive Officers of Public Sector Banks (PSBs) and Public Financial Institutions (PFIs).

During the meeting, bank executives informed the finance minister that the RBI's swap initiatives have received encouraging response, with interest from NRIs in Singapore, Hong Kong, West Asia, the United Kingdom, the United States and other overseas markets. 

They said banks are offering FCNR(B) deposits, including five-year deposits, under the RBI's revised framework.

Banks also reported an increase in FCNR(B) deposit mobilisation and said they expect ECB mobilisation to gather pace during the third quarter of FY 2026-27. 

They informed the Minister that customised outreach initiatives, including digital channels, are being used to engage the NRI diaspora, while International Banking Units (IBUs) at GIFT City are being utilised to mobilise funds from multiple overseas jurisdictions.

Sitharaman called on banks to strengthen outreach to NRIs, introduce innovative deposit products and maximise the use of GIFT City's financial infrastructure to sustain mobilisation under the schemes. 

The RBI informed the meeting that it continues to support participating institutions and is monitoring progress through a daily reporting framework.

The RBI had announced the swap facilities in its Monetary Policy Statement on June 5, 2026. 

The package includes a US Dollar-Rupee forex swap facility for fresh FCNR(B) deposits and concessional swap facilities for eligible ECBs and OFCBs. FCNR(B) deposits are eligible under the scheme until September 30, 2026, while ECBs and OFCBs remain eligible until December 31, 2026.

(KNN Bureau)