Foreign Exchange Management (Guarantees) Regulations, 2026: Reporting Requirements

Reserve Bank of India (RBI), vide RBI/2025-26/192 A.P. (DIR Series) Circular No. 19 dated January 12, 2026 & RBI/2026 27/02, A.P. (DIR Series) Circular No. 01 dated April 01, 2026, has issued instructions on reporting requirements under the Foreign Exchange Management Act (FEMA), 1999 return pertaining Foreign Exchange Management (Guarantees) Regulations, 2026.

These Regulations prescribe conditions and reporting requirements for guarantees involving persons resident in India and persons resident outside India.

This communication is issued to inform you about the revised regulatory requirements and to request your adherence, wherever applicable.

In this regard, we wish to inform you of the following key points:

(1)

Applicability

The Regulations apply to guarantees (including counter guarantees) where any party -

•	the principal debtor,
•	the surety (guarantor), or
•	the creditor,

- is a person resident outside India, and the other party is a person resident in India.

(2)

Reporting Obligations

The responsibility for reporting lies with:

•	Surety, if the surety is resident in India; or
•	Principal Debtor, if the surety is non resident and the principal debtor arranged the guarantee; or
•	Creditor, if both surety and principal debtor are non residents, or where the creditor has arranged the guarantee.

(3)

Reporting Events

The following events are mandatorily reportable:

•

Issuance of a guarantee

•

Any modification in guaranteed terms, including:

-	Change in guaranteed amount
-	Extension of validity period
-	Pre closure of guarantee

•

Invocation of the guarantee, if any

(4)

Reporting Form & Timeline

•	Reporting must be made quarterly, Within 15 calendar days from the end of the relevant quarter
•	The prescribed information must be submitted in the FORM GRN format (Soft copy & Hard copy) to the designated Authorised Dealer (AD) bank branches within prescribed timelines for further submission to RBI.

(5)

Late Submission Fee (LSF)

•	In case of delayed or non reporting, RBI has prescribed a Late Submission Fee (LSF), calculated as: ₹7,500 + (0.025% × Amount involved × Period of delay) (rounded up as per RBI norms)
•	Customers are advised to ensure timely and accurate reporting to avoid penal charges.

We hereby request you to:

• Review all existing and new guarantees involving non residents,

• Identify reporting responsibility as per the Regulations,

• Submit required details and documents to the designated Authorised Dealer (AD) bank branches within prescribed timelines for further submission to RBI.