**Summary:**
This notification, titled the "Foreign Exchange Management Borrowing and Lending Third Amendment Regulations, 2022," amends the Foreign Exchange Management Borrowing and Lending Regulations, 2018. Issued by the Reserve Bank of India (RBI) under the authority of Section 6(2) and Section 47 of the Foreign Exchange Management Act, 1999, the amendment increases the limit for External Commercial Borrowings (ECBs) from USD 750 million (or equivalent) to USD 1500 million (or equivalent) per financial year. This temporary increase is effective for ECBs raised until December 31, 2022. The regulations take effect from the date of notification in the official gazette. The notification number is FEMA.3R2022RB, dated July 28, 2022, and was published in the Gazette of India, Extraordinary, Part III, Section 4, dated July 29, 2022. Ajay Kumar Misra, Chief General Manager-in-charge, is the contact person. The Principal Regulations were initially published under G.S.R. No. 1213(E) on December 17, 2018, and subsequently amended via notification No. G.S.R No. 163(E) on February 26, 2019, and notification No. FEMA. 3R2021RB on May 24, 2021.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for managing the country's monetary policy and regulating the banking system.
Foreign Exchange Management Act, 1999: An act of the Parliament of India to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.
Foreign Exchange Management Borrowing and Lending Regulations, 2018: Regulations issued by the Reserve Bank of India pertaining to borrowing and lending activities involving foreign exchange.
Foreign Exchange Management Borrowing and Lending Third Amendment Regulations, 2022: The specific amendment regulations being introduced in the notification.
Mumbai, Maharashtra: The location of the Central Office of the Reserve Bank of India.
USD 750 million: The original limit for External Commercial Borrowings (ECB) per financial year.
USD 1500 million: The temporarily increased limit for External Commercial Borrowings (ECB) per financial year.
Ajay Kumar Misra: Chief General Manager-in-charge at Reserve Bank of India.
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART III, SECTION (4)]
Reserve Bank of India
Foreign Exchange Department
Central Office
Mumbai
Notification No. FEMA.3(R)(3)/2022-RB July 28, 2022
Foreign Exchange Management (Borrowing and Lending) (Amendment) Regulations, 2022
In exercise of the powers conferred by sub-section (2) of Section 6 and Section 47 of the Foreign Exchange
Management Act, 1999 (42 of 1999), the Reserve Bank of India hereby makes the following amendments to the
Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 (Notification No. FEMA.3(R)/2018-
RB dated December 17, 2018) (hereinafter referred to as 'the Principal Regulations'), namely:
1. Short Title & Commencement:
(i) These Regulations may be called the Foreign Exchange Management (Borrowing and Lending) (Third
Amendment) Regulations, 2022.
(ii) They shall come into force from the date of notification in the official gazette.
2. Amendment to Paragraph 2 of Schedule 1:
After Paragraph 8 of Schedule 1 to the Principal Regulations, the following shall be added;
“8A: The limit of USD 750 million or equivalent per financial year is temporarily increased to USD 1500 million or
equivalent. This dispensation will be available for ECBs raised till December 31, 2022.”
(Ajay Kumar Misra)
Chief General Manager-in-charge
Published in the Official Gazette of Government of India Extraordinary
Part III, Section 4, dated July 29, 2022
Foot Note: - The Principal Regulations were published in the Official Gazette vide G.S.R.No.1213(E) dated
December 17, 2018, in Part II, Section 3, sub-Section (i) and subsequently amended as under:
i. Notification No. G.S.R No. 163(E) published in the official gazette on February 26, 2019.
ii. Notification No. FEMA. 3(R)2/2021-RB published in the official gazette on May 24, 2021.