RBI Notifies New Foreign Exchange Management (Guarantees) Regulations, 2026:
The Reserve Bank of India has introduced a new regulatory framework to govern guarantees involving persons resident outside India. By notifying the Foreign Exchange Management (Guarantees) Regulations, 2026, the central bank aims to improve transparency, simplify compliance, and ensure uniformity in the handling of cross-border guarantees by authorized dealer banks.The Reserve Bank of India has issued the Foreign Exchange Management (Guarantees) Regulations, 2026. These regulations provide a consolidated framework for guarantees involving non-residents under FEMA.The 2026 regulations lay down a comprehensive framework for issuance, modification, and invocation of guarantees involving persons resident outside India.All Authorized Dealer Category-I banks have been directed to strictly follow these rules while facilitating such guarantees.The RBI has also instructed banks to ensure compliance with guidelines issued by the Department of Regulation.
