The Reserve Bank of India (RBI) on April 01, 2026, issued directions regarding reporting requirements under the Foreign Exchange Management Act, 1999 for guarantees covered under Foreign Exchange Management (Guarantees) Regulations, 2026 [FEMA 8 (R)]. The circular mandates persons responsible for reporting guarantees to use specified forms for submission through authorised dealer banks.
The prescribed reporting formats include Form GRN Issue (for issuance of guarantees), Form GRN Modification (for changes such as amount, tenure, or closure), and Form GRN Invocation (for invocation of guarantees). Authorised dealer banks are required to submit these returns to RBI within 30 days from the end of the relevant quarter via the Centralised Information Management System (CIMS), and must assign a unique Guarantee Transaction Number for each reported guarantee.
The circular also clarifies computation of Late Submission Fees (LSF)—for invocation reporting, the amount involved is the liability arising on invocation, while for issue/modification reporting, the amount is treated as nil. These directions are issued under Sections 10(4), 11(1), and 11(2) of FEMA and are effective immediately.
[Notification No. RBI/2026-27/02 – A.P. (DIR Series) Circular No. 01]
