**Executive Summary**
This document is a notification from the Reserve Bank of India regarding amendments to the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018. The amendments, titled "Foreign Exchange Management (Borrowing and Lending) (Amendment) Regulations, 2025," are effective from the date of publication in the official gazette (October 6, 2025). This notification allows AD banks to lend in Indian Rupees to residents outside India residing in Bhutan, Nepal, or Sri Lanka for cross-border trade.
**Key Points / Main Content**
* **Amendment Regulations:** The document introduces the "Foreign Exchange Management (Borrowing and Lending) (Amendment) Regulations, 2025."
* **Effective Date:** The regulations are effective from the date of their publication in the official gazette.
* **Amendment to Regulation 7:**
* A new clause (iv) is added to sub-regulation A of regulation 7 in the principal regulations.
* This clause allows Authorized Dealer (AD) banks to lend in Indian Rupees to residents of Bhutan, Nepal, or Sri Lanka (including banks in these jurisdictions).
* The lending is specifically for cross-border trade transactions.
**Impact Analysis**
**Stakeholder: Authorized Dealer (AD) Banks**
* **Impact:** AD banks are now permitted to extend loans in Indian Rupees to residents and banks in Bhutan, Nepal, and Sri Lanka for facilitating cross-border trade.
* **Action Required:** AD banks must update their internal policies and procedures to incorporate the new provision and ensure compliance.
**Stakeholder: Residents of Bhutan, Nepal, and Sri Lanka (including banks in these jurisdictions)**
* **Impact:** Residents and banks in these countries can now access loans in Indian Rupees from AD banks in India for cross-border trade, potentially facilitating trade and economic activity.
* **Action Required:** Residents and banks can now contact AD banks in India to inquire about and potentially access loans in Indian Rupees for cross-border trade transactions.
Key Entities Referenced
Foreign Exchange Management Act, 1999: The primary legislation under which the amendment regulations are issued.
Reserve Bank of India: The regulator issuing the Foreign Exchange Management (Borrowing and Lending) (Amendment) Regulations, 2025.
Foreign Exchange Management (Borrowing and Lending) Regulations, 2018: The original regulations being amended by this notification.
Bhutan: One of the countries allowed to be lent to in Indian rupees for cross-border trade transactions under the new regulation.
Nepal: One of the countries allowed to be lent to in Indian rupees for cross-border trade transactions under the new regulation.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-एम.एच.-अ.-09102025-266826
xxxGIDHxxx
CG-MH-E-09102025-266826
xxxGIDExxx
असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 663] नई ददल्ली, सोमर्ार, अक्त बू र 6, 2025/आजर् न 14, 1947
No. 663] NEW DELHI, MONDAY, OCTOBER 6, 2025/ASVINA 14, 1947
भारतीय ररज़र् व बकैं
(जर्देिी मद्रु ा जर्भाग)
अजधसचू ना
मुंबई, 6 अक् तूबर, 2025
जर्देिी मद्रु ा प्रबधं (उधार लने ा एर् ं उधार देना) (सिं ोधन) जर्जनयमार्ली, 2025
स.ं फेमा. 3(आर)(4)/2025-आरबी.— जर्देिी मुद्रा प्रबधं अजधजनयम, 1999 (1999 का 42) की धारा 6 की
उप-धारा (2) तथा धारा 47 द्वारा प्रदत्त िजियों का प्रयोग करते हुए भारतीय ररज़र्व बकैं एतद्द्वारा जर्देिी मुद्रा प्रबंध
(उधार लेना एर् ं उधार दने ा) जर्जनयमार्ली, 2018 (ददनांक 17 ददसंबर 2018 की अजधसूचना सं. फेमा 3(आर)/2018-
आरबी), (जिस े इसके पश्चात ‘मलू जर्जनयमार्ली’ कहा गया ह)ै , म ें जनम्नजलजखत संिोधन करता ह;ै अथावत:
1. सजं िप्त नाम और प्रारंभ- (1) इन जर्जनयमों को जर्देिी मुद्रा प्रबंध (उधार लेना एर् ंउधार दने ा) (संिोधन) जर्जनयमार्ली,
2025 कहा िाएगा।
(2) यह जर्जनयमार्ली सरकारी रािपत्र म ेंउसके प्रकािन की तारीख स ेलागू होगी।
6686 GI/2025 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
2. मलू जर्जनयमार्ली म,ें जर्जनयमन 7 उप-जर्जनयमन ए म,ें खडं (iii) के बाद जनम्नजलजखत खंड (iv) िोडा िाएगा, अथातव ्: -
“प्राजधकृत व्यापारी (एडी) बैंक, भारत के बाहर जनर्ासी व्यजियों को िो दक भूटान, नेपाल या श्रीलंका के जनर्ासी
ह,ैं जिसम ेंइन िेत्राजधकारों के बकैं भी िाजमल ह,ैं सीमा पार व्यापार लने देन के जलए भारतीय रुपय ेम ेंउधार प्रदान
कर सकते ह।ै ’’
डॉ. आददत्य गेहा, प्रभारी मुख्य महाप्रबंधक
[जर्ज्ञापन-III/4/असा./397/2025-26]
फूटनोट: मलू जर्जनयमार्ली ददनांक 17 ददसंबर 2018 को िी.एस.आर. स.ं 1213(ई) के तहत सरकारी रािपत्र के भाग II,
खंड 3, उप-खंड (i) में प्रकाजित हुई थी, तत्पश्चात जनम्नानुसार द्वारा संिोजधत, अथावत्;:
अधिसूचना िी.एस.आर. स.ं163(ई) दिनांक 26.02.2019
अधिसूचना स.ं फेमा.3(आर)(2)/2021-आरबी दिनांक 24.05.2021
अधिसूचना स.ं फेमा.3(आर)(3)/2022-आरबी दिनांक 28.07.2022
RESERVE BANK OF INDIA
(Foreign Exchange Department )
NOTIFICATION
Mumbai, the 6th October, 2025
Foreign Exchange Management (Borrowing and Lending) (Amendment) Regulations, 2025
No. FEMA 3(R)(4)/2025-RB.—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.- (1) These Regulations may be called the Foreign Exchange Management
(Borrowing and Lending) (Amendment) Regulations, 2025.
(2) They shall come into force from the date of notification in the official gazette.
2. In the principal regulations, in regulation 7 sub-regulation A, after clause (iii), the following clause (iv) shall be
inserted, namely:-
“An AD bank may lend in Indian Rupees to a person resident outside India being a resident in Bhutan, Nepal
or Sri Lanka, including a bank in these jurisdictions, for cross border trade transactions.”
Dr. ADITYA GAIHA, Chief General Manager-in-Charge
[ADVT.-III/4/Exty./397/2025-26]
Footnote: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 vide the following, namely;
Notification G.S.R No.163(E) dated 26.02.2019
Notification No. FEMA. 3(R)2/2021-RB 24.05.2021
Notification No. FEMA.3(R)(3)/2022-RB dated 28.07.2022
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.