Union Finance Minister Nirmala Sitharaman has urged public sector banks to increase their outreach among Non-Resident Indians (NRIs) and develop new deposit products to attract more foreign currency inflows into India.
Sitharaman made the remarks during a meeting with Managing Directors and Chief Executive Officers of banks and public financial institutions in New Delhi. The discussion focused on Foreign Currency Non-Resident (Bank) deposits and Overseas Foreign Currency Borrowings swap initiatives.
The Finance Minister highlighted the need for stronger NRI engagement to maintain the momentum in foreign currency mobilisation and improve India’s external sector resilience.
Banks Review Progress Under RBI Swap Schemes
During the interaction, bank executives and public financial institutions briefed Sitharaman on the progress achieved under the Reserve Bank of India’s (RBI) swap facility schemes.
The participation of banks in these initiatives has helped mobilise foreign currency resources while supporting India’s foreign exchange reserves.
Officials said the schemes have become an important tool to strengthen the country’s financial stability amid global economic uncertainties and fluctuations in currency markets.
Focus on Innovative Deposit Products
Sitharaman encouraged banks to explore new products and services tailored for the NRI community to increase participation in India’s banking system.
The government’s focus on NRI deposits comes as overseas Indians remain an important source of foreign exchange inflows. Strengthening these channels can help support liquidity conditions and reinforce the country’s external financial position.
Senior Officials Attend Meeting
The meeting was attended by senior officials, including the Secretaries of the Department of Financial Services, Department of Economic Affairs and Department of Revenue, along with the Chief Economic Adviser, RBI Deputy Governor and other senior government representatives.
The discussions underline the government’s efforts to enhance foreign currency inflows, strengthen banking sector participation and build greater resilience against global financial challenges.
