Archive · 12 Jan 2026
RBI Introduces New Foreign Exchange Management Regulations
The Reserve Bank of India has introduced new rules about guarantees involving people outside India.
These rules say that people in India cannot be part of guarantees with people outside India unless it's allowed by special rules.
The rules also explain what counts as a guarantee and when it's okay for Indians to be involved.
There are some exceptions, like for banks and certain financial deals.
Everyone has to report these guarantees to banks every three months.
If they report late, they have to pay a fee.
RBI issued new Foreign Exchange Management (Guarantees) Regulations, 2026, effective January 6, 2026.
Residents in India are generally barred from participating in guarantees involving non-residents unless permitted.
Definition of guarantee expanded to include counter-guarantees and portfolios of liabilities.
Certain exemptions apply, such as AD bank branches abroad, IFSCs, and FPI custodian contracts.
Quarterly reporting of guarantee issuance, changes, and invocation is mandated to AD banks within 15 days of quarter-end.
- Who
- Reserve Bank of India (RBI)
- What
- Issued Foreign Exchange Management (Guarantees) Regulations, 2026
- When
- Effective from January 6, 2026
- Where
- India
- Why
- To regulate guarantees involving non-residents and ensure FEMA compliance
- Effective Date
- January 6, 2026
- Prohibition
- Residents barred from non-resident guarantees unless permitted
- Exemptions
- AD bank branches abroad, IFSCs, FPI custodian contracts, FEMA Overseas Investment Rules
- Reporting Requirement
- Quarterly reporting to AD banks within 15 days of quarter-end
- Late Fee
- ₹7,500 plus 0.025% of the amount per year of delay