ECB registration declines for the first time in FY24: RBI monthly bulletin

The amount of External Commercial Borrowing (ECB) agreement registrations declined for the first time in the financial year 2023-24 (FY24).  According to the Reserve Bank of India’s (RBI) monthly bulletin, ECB registrations dropped to $2.56 billion.

External commercial borrowing (ECB) refers to the borrowing of funds by Indian companies from foreign sources in the form of loans, bonds, or other financial instruments. ECB can be used to finance a variety of purposes, including the expansion of business, the acquisition of assets, and the repayment of existing debt.

Meanwhile, the ECB registrations stood at $7.88 billion in June 2023. In the April-June months of 2023, the total ECB registrations were reported at $21 billion due to huge borrowings from large corporations. 

However, the ECB registrations for July 2022 were recorded at $1.51 billion.  During April-July 2023, both gross and net ECB inflows were higher than April-July 2022.  According to the central bank, nearly two-third of new ECBs were raised for capex.