The Reserve Bank of India (RBI) on January 12, 2026, issued the update to the Master Direction - Import of Goods and Services.
The following has been stated namely: -
• The update primarily aligns the trade framework with the newly introduced Foreign Exchange Management (Guarantees) Regulations, 2026. The most significant change is the implementation of a centralized reporting system via the new Form GRN, which AD Category-I banks shall now use to report the issuance, modification, or invocation of all foreign exchange guarantees.
• This update streamlines compliance by discontinuing the separate quarterly reporting for guarantees related to Trade Credits (effective from the March 2026 quarter), folding them into the standardized GRN framework instead.
• Additionally, these changes reinforce recent "ease of doing business" measures, such as the simplified closure of import entries up to INR 1 million based on self-declaration and the extension of the foreign exchange outlay period for Merchanting Trade to six months.
• Overall, the update shifts the regulatory focus toward a more digital, consolidated reporting environment while reducing the granular filing burden for importers and their banks.
[Notification no. - RBI/FED/2016-17/12 FED Master Direction No. 17/2016-17]
