ECB fundraise proposals surge 25.8% to $4.73 billion in May: RBI
Synopsis
Indian corporate appetite for overseas debt is accelerating fast — ECB proposals jumped 25.8% in a single month to $4.73 billion in May, led by state-owned giants IRFC and NTPC. The RBI's forex swap incentives and a coordinated NRI deposit push are reshaping India's foreign capital inflow strategy at a critical moment for the balance of payments.
Key Takeaways
Indian firms' ECB proposals surged 25.8% month-on-month to over $4.73 billion in May 2025 , up from $3.77 billion in April.
Indian Railway Finance Corporation Limited (IRFC) led filings at over $1.11 billion ; NTPC filed for $750 million .
Finance Minister Nirmala Sitharaman was briefed on 13 July about strong NRI response to FCNR(B) deposit incentives and ECB swap schemes.
The RBI announced a US Dollar-Rupee forex swap at par and a concessional swap facility for ECBs and OFCBs in its 5 June 2025 Monetary Policy Statement.
Public sector banks have deployed digital and customised outreach strategies to accelerate NRI diaspora deposit mobilisation.
Indian companies' proposals to raise funds through the External Commercial Borrowings (ECB) route jumped 25.8% month-on-month to over $4.73 billion in May 2025, according to data released by the Reserve Bank of India (RBI) on Tuesday, 14 July. The figure marks a sharp acceleration from the $3.77 billion recorded in April, signalling growing appetite among Indian corporates for overseas debt.
Key Filings in May
The Indian Railway Finance Corporation Limited (IRFC) led the pack with proposals worth over $1.11 billion, followed by state-run power giant NTPC, which filed for $750 million. The RBI's release covers filings under both the automatic and approval routes, encompassing ECBs, Foreign Currency Convertible Bonds (FCCBs), and Rupee Denominated Bonds (RDBs).
NRI Deposit Momentum Builds
The ECB surge comes alongside a broader push to attract foreign capital. On Monday, 13 July, chiefs of public sector banks (PSBs) and financial institutions briefed Finance Minister Nirmala Sitharaman, reporting strong non-resident Indian (NRI) response to higher interest rates and incentives on Foreign Currency Non-Resident Bank (FCNR(B)) deposits, ECBs, and Overseas Foreign Currency Borrowings (OFCBs) swap initiatives.
Banks noted that FCNR(B) deposit mobilisation has shown a clear accelerating trend, supported by the suspension of the interest rate ceiling on fresh deposits under the scheme. Sitharaman called upon banks to intensify outreach to the Indian diaspora, introduce innovative deposit products, and sustain mobilisation momentum for the remaining period of the schemes.
RBI Schemes Driving the Inflows
The schemes underpinning this capital inflow push were announced by the RBI Governor in the Monetary Policy Statement of 5 June 2025. They include a US Dollar-Rupee forex swap facility at par for fresh FCNR(B) deposits and a concessional swap facility for eligible ECBs and OFCBs. The stated objectives are to attract foreign capital, strengthen the balance of payments, and incentivise capital inflows.
Outreach and Strategy
Public sector banks informed the Finance Minister that they have deployed customised outreach strategies — including digital channels — to engage with the non-resident Indian diaspora. The banks expect inflows to gain further momentum as diaspora engagement intensifies. Notably, this coordinated push across ECBs, OFCBs, and FCNR(B) deposits represents one of the more structured capital mobilisation drives in recent years, coinciding with a period of global uncertainty over interest rate trajectories.
With the RBI's swap facilities active and PSBs stepping up diaspora outreach, the trajectory of foreign capital inflows into India will be closely watched in the months ahead.
Point of View
And state-owned borrowers like IRFC and NTPC are leading precisely because they can move fastest on sovereign-adjacent credit. The deeper question is whether this inflow surge is durable or front-loaded before global rate conditions tighten again. The simultaneous FCNR(B) push signals the Centre is hedging across instruments, but coordinated mobilisation drives have historically lost steam once the incentive window closes. The balance of payments benefit is real but time-bound.
NationPress
14 Jul 2026
Frequently Asked Questions
What is the ECB route and why are Indian companies using it?
The External Commercial Borrowing (ECB) route allows Indian companies to raise funds from overseas lenders in foreign currency. Companies use it to access larger loan pools at potentially lower interest rates than domestic markets, particularly when the RBI offers concessional swap facilities that reduce hedging costs.
How much did Indian ECB proposals rise in May 2025?
Indian companies' ECB proposals rose 25.8% month-on-month to over $4.73 billion in May 2025, up from $3.77 billion in April, according to RBI data released on 14 July.
Which companies filed the largest ECB proposals in May?
The Indian Railway Finance Corporation Limited (IRFC) led with proposals worth over $1.11 billion, followed by NTPC, which filed for $750 million.
What RBI schemes are driving the surge in foreign capital inflows?
The RBI announced two key schemes in its Monetary Policy Statement of 5 June 2025: a US Dollar-Rupee forex swap facility at par for fresh FCNR(B) deposits, and a concessional swap facility for eligible ECBs and Overseas Foreign Currency Borrowings (OFCBs). Both aim to attract foreign capital and strengthen India's balance of payments.
What did Finance Minister Nirmala Sitharaman ask banks to do?
On 13 July, Sitharaman called upon public sector bank chiefs to intensify outreach to the NRI diaspora, introduce innovative deposit products, and sustain the momentum of FCNR(B) deposit mobilisation for the remaining period of the schemes.
