Overview: On 13 July 2026, Union Finance Minister Smt. Nirmala Sitharaman met heads of public sector banks (PSBs) and public financial institutions (PFIs) to review progress of the FCNR(B), ECBs and OFCBs swap schemes. The discussion focused on enhancing outreach to the NRI diaspora and leveraging the infrastructure at GIFT City’s International Banking Units (IBUs).
Key Developments
- Banks report strong interest in FCNR(B) deposits, especially five‑year tenures, after the RBI lifted the interest‑rate ceiling on fresh deposits.
- Significant NRI demand observed from Singapore, Hong Kong, West Asia, the UK, the US and other jurisdictions.
- PSBs project a sharper rise in ECB mobilisation in Q3 FY 2026‑27 (Oct‑Dec 2026).
- Customised digital outreach strategies are being rolled out to engage NRIs.
- IBUs at the IFSC are being used to channel funds from multiple overseas markets.
- RBI Deputy Governor assured continued support and real‑time monitoring through a robust daily reporting framework.
Important Facts
The swap schemes were announced in the RBI Governor’s Monetary Policy Statement on 5 June 2026. They comprise a USD‑INR forex swap at par for fresh FCNR(B) deposits and a concessional swap for eligible ECBs and OFCBs. Eligibility periods end on 30 September 2026 for FCNR(B) and 31 December 2026 for ECBs and OFCBs.
Public sector banks, private banks and PFIs are all participating, indicating broad‑based acceptance. The schemes aim to attract foreign capital, bolster the balance of payments and increase foreign‑exchange reserves.
Exam Relevance
Understanding these initiatives helps aspirants answer questions on RBI</