- Meeting with heads of public sector banks on July 13.
- Review of progress of foreign exchange deposit mobilization campaign.
- There will be discussion on FCNR-B, foreign currency bonds and ECB.
New Delhi. Union Finance Minister Nirmala Sitharaman will hold a meeting with the heads of public sector banks (PSBs) on Monday. In the meeting, the progress of the campaign being run by banks to mobilize foreign currency deposits will be reviewed.
Union Finance Minister Nirmala Sitharaman will chair a meeting with heads of public sector banks and financial institutions, including IDBI Bank, on Monday, July 13, official sources said on Friday.
Issues related to raising foreign currency non-resident (bank) deposits (FCNR-B), foreign currency bonds and external commercial borrowings (ECB) will be discussed in this meeting.
Apart from this, Finance Minister Nirmala Sitharaman may also urge public sector banks to increase credit flow to the productive sectors of the economy.
The move comes at a time when there has been a sharp decline in inflows into FCNR (B) deposits. Its net inflow has declined to only $946 million in the financial year 2025-26, whereas it was $7.1 billion in the financial year 2024-25.
It is noteworthy that the Reserve Bank of India (RBI) last month had removed the interest rate cap on new FCNR (B) deposits with a tenure of three to five years till September 30 to attract foreign currency deposits from Non-Resident Indians (NRIs), Overseas Citizens of Indian Origin (OCIs) and People of Indian Origin (PIOs).
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