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ARTICLE · 04 FEBRUARY 2026

Foreign Exchange Management (Guarantees) Regulations, 2026: A Brief Overview

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Recently, the Reserve Bank of India notified the Foreign Exchange Management (Guarantees) Regulations, 2026, which replace the erstwhile Foreign Exchange Management (Guarantees) Regulations, 2000.

IndiaFinance and Banking
Neeraj Vyas
Neeraj Vyas
Mehak Chadha
Mehak Chadha
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I. Introduction

Recently, the Reserve Bank of India ("RBI") notified the Foreign Exchange Management (Guarantees) Regulations, 2026 ("Guarantees Regulations 2026"), which replace the erstwhile Foreign Exchange Management (Guarantees) Regulations, 2000 ("Guarantees Regulations 2000"). The Guarantees Regulations 2026 have been introduced under the Foreign Exchange Management Act, 1999 ("FEMA") with the objective of regulating cross-border guarantees involving Indian residents and non-residents.

The Guarantees Regulations 2026 lay down a comprehensive framework governing the issuance of guarantees by Indian residents, including prohibitions, exemptions, and conditions applicable to persons acting as sureties, creditors, or principal debtors. In addition, the Guarantees Regulations 2026 prescribe reporting requirements and provide for the levy of late submission fees in cases of delayed reporting.

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