NEW DELHI, Jan. 12 -- The Government of India issued the following FEMA circular:
RBI/2025-26/192
A.P. (DIR Series) Circular No. 19
January 12, 2026
All Authorised Dealer Category I Banks,
Madam / Sir,
Foreign Exchange Management (Guarantees) Regulations, 2026
The Reserve Bank of India has 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.
2. 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.
3. Upon issuance of aforementioned regulations,
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the A.P. (DIR Series) Circulars as per the Annex to these directions are being superseded, except as respects things done or omitted to be done before such supersession.
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quarterly reporting on issuance of guarantee for Trade Credit is being discontinued from quarter ending March 2026.
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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, 1999 are being amended.
4. Authorised dealer banks may bring the contents of the circular to the notice of their customers/ constituents concerned.
5. The directions contained in this circular have been issued under sections 10(4), 11(1) and 11(2) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,
(Dr. Aditya Gaiha)
Chief General Manager-in-Charge
Annex
Sl No. Circular Date 1. A.P. (DIR Series) Circular No. 9 August 13, 2002 2. A.P. (DIR Series) Circular No. 41 November 8, 2002 3. A.P. (DIR Series) Circular No. 84 March 3, 2003 4. A.P. (DIR Series) Circular No. 17 October 16, 2004 5. A.P. (DIR Series) Circular No. 24 November 1, 2004 6. A.P. (DIR Series) Circular No. 13 November 17, 2006 7. A. P. (DIR Series) Circular No. 62 April 20, 2009 8. A.P. (DIR Series) Circular No. 11 October 5, 2009 9. A.P. (DIR Series) Circular No. 40 March 2, 2010 10. A.P. (DIR Series) Circular No. 54 April 29, 2011 11. A.P. (DIR Series) Circular No. 28 September 26, 2011 12. A. P. (DIR Series) Circular No. 20 August 29, 2012 13. A.P. (DIR Series) Circular No.120 June 26, 2013 14. A.P. (DIR Series) Circular No. 37 September 05, 2013 15. A.P. (DIR Series) Circular No. 75 November 19, 2013 16. A.P. (DIR Series) Circular No. 56 January 6, 2015 17. A.P. (DIR Series) Circular No. 1 July 07, 2016 18. A.P. (DIR Series) Circular No. 05 June 09, 2022 19. A.P. (DIR Series) Circular No. 10 December 22, 2023
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