{
  "id": 423362,
  "title": "Govt taps inputs from public sector banks to lure foreign capital",
  "url": "https://urgent.news/2026/08/09/govt-taps-inputs-from-public-sector-banks-to-lure-foreign-capital",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-09T18:56:01.000Z",
  "source": {
    "name": "The Economic Times - Top News",
    "slug": "the-economic-times-top-news",
    "url": "https://economictimes.indiatimes.com/markets/stocks/news/govt-taps-inputs-from-public-sector-banks-to-lure-foreign-capital/articleshow/133076978.cms"
  },
  "original_language": "en",
  "account": "In a bid to attract foreign investments and stabilize the Indian rupee, the government has convened a two-day meeting with state-owned banks. This annual PSB Manthan event, scheduled for August 17-18 in New Delhi, aims to address the widening current-account gap, largely driven by high energy import bills, according to senior bankers.\n\nFinance Minister Nirmala Sitharaman will review the proposals presented by the bankers on August 18. The meeting will focus on deposit mobilization, attracting investors for global capability centers in India, strengthening funds for medium and small enterprises, and supporting the agriculture and horticulture sector.\n\nKey attendees include the CEOs of all Public Sector Undertaking (PSU) banks, such as State Bank of India's CS Setty, along with representatives from the National Bank for Financing Infrastructure and Development, Power Finance Corporation, National Housing Bank, and Small Industries Development Bank of India.\n\nEconomists believe that fresh foreign capital inflows would bolster foreign exchange reserves, stimulate domestic manufacturing, and foster long-term economic growth. Current Account Deficit (CAD) is a result of domestic savings not enough to fund domestic investment, which can lead to a growth cycle dependent on investment, creating jobs and capacity.\n\nForeign direct investments (FDI) are crucial, as India runs a CAD. The Reserve Bank of India (RBI) introduced a dollar-swap facility on June 5, offering concessional rates for foreign currency deposits and external commercial borrowings by state-run lenders. India attracted $40 billion in foreign currency inflows until July 30 under this program, with FCNR deposits contributing $36 billion.\n\nHowever, FCNR deposits can only temporarily slow the rupee's depreciation. The RBI Governor, Sanjay Malhotra, emphasized that FDI is more durable, sticky, and preferable. The government is signing trade agreements to indirectly attract investments, ensuring a stable currency protects returns in dollar terms for foreign investors.",
  "summary": "Government will meet state-owned lenders to attract foreign investment. This aims to stabilize the rupee and bridge the current-account gap. The meeting will also focus on deposit mobilization and supporting small businesses. Fresh foreign capital inflows will boost reserves and domestic manufacturing. Durable foreign direct investment is preferred over short-term deposits.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "The Economic Times",
        "title": "Govt taps inputs from PSBs to lure foreign capital",
        "url": "https://urgent.news/2026/08/09/govt-taps-inputs-from-psbs-to-lure-foreign-capital",
        "published": "2026-08-09T18:56:01.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}