INDIA: RBI Issues Foreign Exchange Management Regulations

Tuesday January 13 2026

On 12^th January 2026, the Reserve Bank of India (RBI) issued Foreign Exchange Management (Guarantees) Regulations, 2026. Authorised dealer banks are directed to be guided by the regulations ibid, while facilitating a guarantee wherein any of the parties is a person resident outside India. Authorised dealer banks may also note to ensure compliance to regulatory guidelines issued by Department of Regulation, Reserve Bank of India.

The regulations provide for comprehensive reporting of all guarantees – issued, modified or invoked, to the authorised dealer banks, in form GRN annexed to the regulations. The manner and format in which authorised dealer bank shall compile and submit the returns received will be communicated in due course.

Upon issuance of aforementioned regulations,

• the A.P. (DIR Series) Circulars as per the Annex to these directions are being superseded, except as respects things done or omitted to be done before such supersession.
• quarterly reporting on issuance of guarantee for Trade Credit is being discontinued from quarter ending March 2026.
• guarantee related provisions in Master Direction – External Commercial Borrowings, Trade Credits and Structured Obligations; Master Directions – Export of Goods and Services; Master Directions – Import of Goods and Services; Master Direction – Other Remittance Facilities; and Master Direction – Reporting under Foreign Exchange Management Act, 1999are being amended.

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