The Reserve Bank of India (RBI) on January 12, 2026, issued a circular regarding the Foreign Exchange Management (Guarantees) Regulations, 2026.
The following has been stated: -
•RBI has notified the Foreign Exchange Management (Guarantees) Regulations, 2026, guiding authorised dealer (AD) banks in handling guarantees involving persons resident outside India.
•The regulations mandate comprehensive reporting of all guarantees issued, modified, or invoked through Form GRN, with reporting modalities to be notified separately.
•Earlier A.P. (DIR Series) Circulars listed in the Annex are superseded, quarterly trade credit guarantee reporting is discontinued from March 2026, and relevant Master Directions are amended.
•AD banks are instructed to inform customers and ensure compliance with FEMA provisions and other applicable regulatory requirements.
[Circular No.: RBI/2025-26/192 A.P. (DIR Series) Circular No. 19]
