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RBI Notifies Foreign Exchange Management (Guarantee) Regulations, 2026 – Revised Framework for Cross-Border Guarantees March 27, 2026
Published in: Alerts
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The Reserve Bank of India has notified the Foreign Exchange Management (Guarantee) Regulations, 2026, superseding the earlier 2000 framework and introducing a comprehensive regime governing guarantees involving persons resident in India and outside India.
The Regulations define key concepts such as guarantee, principal debtor, surety, and creditor, and impose a general restriction on cross-border guarantee arrangements unless specifically permitted under FEMA or by RBI approval. They also outline permitted scenarios for Indian residents to act as surety or principal debtor, along with conditions for obtaining guarantees as a creditor.
Further, the framework prescribes exemptions for certain transactions, including guarantees under overseas investment regulations and specific banking arrangements, while introducing structured reporting requirements through quarterly filings in Form GRN. Delays in reporting attract a prescribed late submission fee.
Click here to view the regulations: https://lnkd.in/da2yBKfq
For any clarification, please write to [email protected]
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