Finance Minister Nirmala Sitharaman is scheduled to meet the heads of public sector banks (PSBs) and other financial institutions on Monday to review the progress of efforts to mobilise foreign currency deposits. The meeting is expected to focus on Non-Resident Indian and related customer segments, including Non-Resident Indians, Overseas Citizens of India and Persons of Indian Origin, and to assess results under the foreign currency deposit mobilisation campaign.
The discussion follows a change by the Reserve Bank of India (RBI) last month: it withdraws, until September 30, the interest rate ceiling on fresh Foreign Currency Non-Resident (Bank) deposits with 3–5 years’ maturity. Sources report the policy move is intended to support inflows, after FCNR(B) deposit inflows weakened. Net inflows are reported to have fallen to about USD 946 million in FY26 from USD 7.1 billion in FY25.
Alongside FCNR(B) deposits, the meeting agenda includes Overseas Foreign Currency Bonds and External Commercial Borrowings. Sources also state the RBI is providing a concessional foreign exchange swap facility under the new arrangement to support mobilisation and foreign funding.
