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.
First Published: Sep 19 2023 | 11:55 PM IST