**Executive Summary**
This circular, issued by the Reserve Bank of India on January 12, 2026, pertains to the Foreign Exchange Management (Guarantees) Regulations, 2026. It directs Authorised Dealer Category I Banks to adhere to the new regulations, which provide comprehensive reporting for all guarantees. The A.P. (DIR Series) Circulars listed in the Annex are superseded upon issuance of these new regulations.
**Key Points / Main Content**
* **New Regulations:**
* The Reserve Bank of India has issued Foreign Exchange Management (Guarantees) Regulations, 2026.
* Authorised Dealer Banks must follow these regulations when facilitating guarantees involving parties resident outside India.
* Compliance with regulatory guidelines from the Department of Regulation, Reserve Bank of India, must be ensured.
* **Reporting Requirements:**
* The regulations mandate comprehensive reporting of all guarantees (issued, modified, or invoked) to Authorised Dealer Banks using the GRN form.
* The method for compiling and submitting returns will be communicated separately.
* **Supersession and Amendments:**
* The A.P. (DIR Series) Circulars in the Annex are superseded, except for actions already completed before the supersession.
* Quarterly reporting on the issuance of guarantees for Trade Credit is discontinued after March 2026.
* Amendments are being made to guarantee-related provisions in several Master Directions, including:
* External Commercial Borrowings, Trade Credits and Structured Obligations.
* Export of Goods and Services.
* Import of Goods and Services.
* Other Remittance Facilities.
* Reporting under Foreign Exchange Management Act, 1999.
* **General Instructions:**
* Authorised Dealer Banks should inform their customers/constituents about the contents of the circular.
* The directions are issued under sections 10(4), 11(1) and 11(2) of the Foreign Exchange Management Act, 1999 and do not affect required permissions/approvals under any other law.
**Impact Analysis**
**Stakeholder**: Authorised Dealer Category I Banks
**Impact**:
These banks are now subject to the new Foreign Exchange Management (Guarantees) Regulations, 2026. They must adhere to new reporting requirements and operational changes.
**Action Required**:
* Implement the new regulations and ensure compliance.
* Discontinue quarterly reporting on Trade Credit guarantees after March 2026.
* Inform customers about the new regulations.
* Acknowledge amendments to the Master Directions listed.
Key Entities Referenced
Foreign Exchange Management (Guarantees) Regulations, 2026: New regulations being issued by the Reserve Bank of India related to foreign exchange management guarantees.
Foreign Exchange Management Act, 1999: The act under which the circular's directions are issued and referenced for amendment.
Reserve Bank of India: The issuer of the circular and the regulator referenced in the document.
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: Existing Master Directions being amended by the new regulations.
Authorised Dealer Category I Banks: The banks that the circular is addressed to and that are directed to be guided by the new regulations.
बेटी बचाओ
बेटी पढ़ाओ
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
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,
(a) 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.
(b) quarterly reporting on issuance of guarantee for Trade Credit is being
discontinued from quarter ending March 2026.
(c) 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.
विदेशी मुद्रा विभाग, केन्द्रीय कायाालय, केन्द्रीय कायाालय भिन, शहीद भगतव िंह मागा, फोर्ा, मुिंबई-400 001 भारत
Foreign Exchange Department, Central Office ,Central Office building, Shahid Bhagat Singh Road, Fort, Mumbai-400 001, India
टेलीफोन/Telephone No.022-22601000, ईमेल:fedcopcd@rbi.org.in
वहिंदी में काम करना आ ान है, इ का प्रयोग बढाइए ।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
2Annex
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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