RBI releases data on ECB/ FCCB/ RDB for August 2025 [Download]

The Reserve Bank of India has today released the data on External Commercial Borrowings (ECB), Foreign Currency Convertible Bonds (FCCB) and Rupee Denominated Bonds (RDB) both, through Automatic Route and Approval Route, for the month of August 2025.

Let’s Understand ECB, FCCB, RDB

1. External Commercial Borrowings (ECB)

External Commercial Borrowings are loans taken by Indian companies from foreign lenders (such as banks, financial institutions, or other investors) in foreign currency.

Example: If an Indian company borrows USD 100 million from a bank in Singapore to expand its business in India — that is an ECB.

Purpose: Companies use ECBs for expansion, infrastructure, new projects, or modernization — but not usually for investing in stock markets or real estate.

2. Foreign Currency Convertible Bonds (FCCB)

FCCBs are bonds issued by Indian companies in a foreign currency, which can later be converted into shares (equity) of the issuing company.

Example: If a company issues $10 million worth of FCCBs to investors abroad, those investors can either take back the money with interest or convert the bonds into company shares after a certain time.

Purpose: FCCBs help companies raise funds at lower interest rates and also attract foreign investors.

3. Rupee Denominated Bonds (RDB) — also called Masala Bonds

RDBs are bonds issued outside India but in Indian Rupees instead of foreign currency. This means the foreign investor bears the currency risk, not the Indian company.

Example: An Indian company issues ₹1,000 crore worth of bonds in London. Investors there buy the bonds, but repayment and interest are in Indian Rupees — this is an RDB or Masala Bond.

Purpose: They help Indian companies raise money from abroad while protecting them from foreign exchange rate fluctuations.