FM Sitharaman to Review Foreign Currency Drive With PSB Heads

The meeting, scheduled for July 13, 2026, will bring together managing directors and chief executive officers of public sector banks and top officials from financial institutions. The agenda focuses on assessing the performance of the ongoing campaign to attract foreign currency deposits, a key component of the government's strategy to bolster the country's foreign exchange reserves.

Sources indicate that the review will cover the targets set for each bank, the progress achieved so far, and the challenges faced in mobilizing deposits from non-resident Indians and other overseas sources. The finance minister is expected to emphasize the need for aggressive marketing and streamlined processes to tap into the potential of the Indian diaspora.

The meeting comes amid global economic uncertainties and a volatile currency market. The government has been encouraging banks to offer attractive interest rates on foreign currency deposits to increase inflows. The campaign, launched earlier this year, aims to raise a significant amount to strengthen the external sector position.

Bankers are likely to present their individual strategies and seek policy support to overcome hurdles such as regulatory compliance and competition from offshore financial centers. The finance minister may also discuss the possibility of introducing new incentives to boost participation.

This review is part of a series of interactions between the finance ministry and banking leaders to ensure that the foreign currency drive meets its objectives. The outcomes of the meeting are expected to guide future policy decisions in this area.