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According to RBI Data ECBs Net Inflows More Than Double to USD 18.4 Billion in 10MFY25.

Banking & Finance | Dated: 24 Mar 2025

According to the article titled 'State of Economy' published by the Reserve Bank of India (RBI) in its March bulletin, net inflows from External Commercial Borrowings (ECBs) have more than doubled, reaching USD 18.4 billion in the first 10 months (from April 2024 to January 2025) of the Financial Year 2024-25 (FY25), compared to the previous year (FY24). This surge is mainly due to the falling costs of raising funds from overseas.

🎯 Key Highlights:

- The report also showed that the total ECB registrations and disbursements stood at USD 47.3 billion and USD 42.3 billion, respectively, in the first 10 months of FY25 on a cumulative basis.
- These amounts are significantly higher than those during the same period last year.

💡 Other Important Facts:

(i) According to RBI data, outflows from ECBs due to principal repayments reached USD 23.9 billion in the first 10 months of FY25.
(ii) The data revealed that net inflows from ECBs were USD 9.5 billion in FY24, which is much higher than the inflows seen in FY23.
(iii) The RBI highlighted a continuous decrease in the Secured Overnight Financing Rate (SOFR) since August 2024. This reduction has played a key role in lowering the overall costs of raising funds through ECBs.

📚 Test Your Knowledge:

Which organization recently reported the net inflows of ECBs surging to USD 18.4 billion in 10MFY25?

Correct Answer: RBI

🚀 Quick Recap:

About RBI

Governor : Sanjay Malhotra
Headquarter : Mumbai