RBI to meet bank heads Tue, discuss FCNR(B) deposits, economy
This story was originally published at 22:29 IST on 13 July 2026
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NEW DELHI – The Reserve Bank of India will meet the heads of banks Tuesday to discuss the progress in its tools to attract foreign inflows, according to several bankers aware of the invitation. Discussion points also include other macroeconomic agenda items, two of the bankers said.
The regulator's meeting comes on the heels of Finance Minister Nirmala Sitharaman's conclave with top officials of all public-sector banks and financial institutions Monday in New Delhi. Sitharaman asked the banks to intensify outreach programmes to sustain the momentum in inflows under the schemes to raise fresh foreign currency non-resident (bank) deposits and the RBI's concessional dollar-rupee forex swap facility for external commercial borrowings for public-sector undertakings.
On Jun. 8, the RBI had unveiled a facility under which it will bear the full hedging costs for banks raising fresh three- to five-year FCNR(B) deposits until Sept. 30. Another concessional foreign exchange swap facility was opened until Dec. 31 to incentivise external commercial borrowings by public-sector undertakings. Market participants peg the FCNR(B) inflows so far at $9 billion-$10 billion, most of it after the regulator issued much-awaited operational clarifications on the scheme on Jun. 23.
"First the government, now the RBI has also called us tomorrow (Tuesday) to discuss FCNR(B)," a senior official at a state-owned bank said. "There are some challenges so let's see what the RBI says. I think banks have given a clear picture that there is enthuasiasm from customers but the flows are limited as of now."
Most of the bankers said the discussion will centre on the capital inflow measures, the highlight of the RBI's June monetary policy decision, which came after the rupee had hit a record low in May. So far, foreign portfolio investors have slowed equity sales while pumping in record amounts into India's debt instruments. During Jan-May, foreign portfolio investors had pulled out $24.67 billion from Indian markets, more than three times the $7.6 billion pulled out in the corresponding period last year.
Some bankers said the central bank's invitation had a wider agenda, including discussions on the macroeconomic outlook for India amid geopolitical uncertainty. "Not only for FCNR. There are a host of agenda items including views on the macroeconomy," a senior official at a private-sector bank said.
The RBI regularly meets banks to gauge the uptake of its flagship schemes and the meeting with bank heads Tuesday may be part of the same outreach, the bankers said. One of the officials also said different cateogories of banks may be called by the RBI in groups so as to limit participant size and have a wider-ranging discussion. End
US$1 = INR 95.62
Reported by Aaryan Khanna
Edited by Rajeev Pai
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