India FM Urges Banks to Step Up NRI Outreach as Forex Mobilisation Gains Pace

• FM calls on banks to intensify NRI engagement and launch innovative deposit products.

• RBI swap schemes aim to strengthen forex reserves and stabilise the rupee.

• Up to $70 billion could be raised via FCNR(B), ECB and OFCB routes.

• India’s forex reserves stand at $682 billion.

• Strong NRI interest reported across major global financial hubs.

Finance Minister Nirmala Sitharaman on Monday directed banks to scale up engagement with non-resident Indians (NRIs), develop fresh deposit offerings, and maintain the current momentum in attracting foreign-currency inflows.

The review meeting assessed progress under the Reserve Bank of India’s (RBI) swap facility schemes announced in June. These include special windows for Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits, External Commercial Borrowings (ECBs), and Overseas Foreign Currency Borrowings (OFCBs). The measures were introduced jointly by the government and the RBI to strengthen India’s foreign exchange reserves and cushion the rupee against volatility arising from the West Asia crisis.

Targeting Up to $70 Billion in Inflows

Industry estimates suggest that banks and financial institutions could mobilise as much as $70 billion through these instruments. According to a recent analysis by brokerage firm Jefferies, India’s foreign exchange reserves — currently at $682 billion — stand to benefit significantly from sustained inflows, potentially bolstering domestic liquidity and supporting currency stability.

Sitharaman emphasised the need for banks to keep up the pace during the remaining validity of the schemes. FCNR(B) deposits are eligible under the swap facility until September 30, while ECBs and OFCBs can be availed until December 31.

She also encouraged lenders to make optimal use of the financial ecosystem available at Gujarat International Finance Tec-City (GIFT City), which has emerged as a key hub for international financial services.

Strong Diaspora Response

Senior executives from public sector banks and financial institutions informed the minister that the response from NRIs has been encouraging. Depositors from Singapore, Hong Kong, West Asia, the United Kingdom, the United States, and other global centres have shown notable interest in the schemes.

According to the finance ministry’s statement, the initiatives have generated healthy traction across FCNR(B) deposits as well as ECB and OFCB channels. Banks expressed optimism that ECB mobilisation, in particular, is likely to gather stronger momentum in the third quarter of the current fiscal year.

Customised Strategies and Digital Push

Lenders highlighted that they have rolled out tailored outreach campaigns, including digital engagement platforms, to connect with overseas Indians more effectively. Attractive interest rates on FCNR(B) deposits have further strengthened the upward trend in mobilisation.

The RBI, represented at the meeting by a deputy governor, reaffirmed its commitment to assisting banks in facilitating eligible borrowings and enhancing deposit inflows. The central bank’s support is seen as crucial in ensuring smooth implementation of the schemes.

Banks also outlined plans to leverage the positive sentiment among the diaspora and accelerate deposit collection during the remaining tenure of the facilities.

With global uncertainties persisting, the government’s coordinated push to tap NRI savings and overseas borrowing avenues underscores its broader strategy to reinforce India’s external sector resilience while maintaining currency stability.