Sitharaman tells banks: Devise ways to sustain foreign currency deposits

Finance Minister Nirmala Sitharaman urged banks to enhance outreach to Non-Resident Indians and introduce innovative deposit products to sustain foreign currency deposit momentum.

Sitharaman reviewed Foreign Currency Non-Resident (Bank), External Commercial Borrowings, and Overseas Foreign Currency Borrowings swap initiatives with public sector banks and financial institutions.

Banks reported significant interest from NRIs in Singapore, Hong Kong, West Asia, the UK, and the US.

Attractive returns are being offered on FCNR(B) deposits, including five-year options, supported by suspended interest rate ceilings.

The initiative aims to mobilize further foreign currency inflows for the nation.