RBI Reports Surge in May ECB Proposals, Advises Banks on AI and Security

Mumbai, July 14 — The Reserve Bank of India’s latest release reveals a 25.8% rise in external commercial borrowing proposals from Indian companies during May 2026. The aggregate amount exceeded $4.73 billion, up from $3.77 billion in the previous month.

The data set includes both automatic and approval‑based submissions for ECBs, foreign‑currency convertible bonds and rupee‑denominated bonds, indicating a clear acceleration in external financing activity.

Indian Railway Finance Corporation topped the list with a request for more than $1.11 billion, while NTPC submitted a $750 million proposal.

In a concurrent semi‑annual gathering, the RBI Governor met with managing directors and chief executives of state‑run banks and selected private banks. He urged the banking sector to intensify the use of artificial intelligence to broaden market penetration, reduce costs, improve client experience and sharpen efficiency. He also highlighted the critical need for cyber‑security, solid internal controls, and protection against data manipulation and fraud.

The meeting covered additional topics such as KYC compliance, early detection of fake Indian currency (FICN), the Mylhunter detection platform, the central bank digital currency initiative, Unified Lending Interface, account aggregators, retail foreign exchange and the upcoming retail‑direct model.