PREVIOUS
✖
New FEMA Regulations on Foreign Guarantees
January 18 , 2026
15 hrs 0 min
27
0
- The Reserve Bank of India (RBI) notified the Foreign Exchange Management (Guarantees) Regulations, 2026.
- The regulations provide a regulatory framework for guarantees involving persons resident outside India.
- They are issued under the Foreign Exchange Management Act (FEMA), 1999.
- Authorised Dealer Category-I (AD-I) banks are required to comply with the new regulations while issuing, modifying, or invoking guarantees related to non-residents.
- The regulations mandate mandatory reporting of all guarantee-related transactions by AD-I banks in a prescribed format.
- Several earlier Authorised Persons (Directions Series) circulars related to guarantees have been superseded.
- The requirement of quarterly reporting on guarantees for Trade Credit has been discontinued from the quarter ending March 2026.
Leave a Reply
Your Comment is awaiting moderation.