Introduction
On 16 February 2026, the Reserve Bank of India (“RBI”) has issued the Foreign Exchange Management (Borrowing and Lending) (First Amendment) Regulations, 2026 (“Amended ECB Regulations”) thereby significantly amending the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 (“Erstwhile ECB Regulations”).
The Amended ECB Regulations has inter alia: (i) raised borrowing thresholds; (ii) expanded eligible borrowers and recognized lenders; (iii) eased reporting requirements; and (iv) revamped permissible end-uses.
The Amended ECB Regulations have a prospective application only and existing ECBs (“External Commercial Borrowings”) will continue to be governed by the Erstwhile ECB Regulations. However, the reporting requirements for existing ECBs will be in accordance with the timelines mentioned under the Amended ECB Regulations.
