<h1>Central bank proposes principle-based FEMA, 1999 guarantee rules to allow automatic cross-border guarantees with expanded scope and reporting</h1> A central bank proposes principle-based amendments to guarantee regulations under the Foreign Exchange Management Act, 1999, aiming to simplify cross-border guarantees by permitting them generally under an automatic route so long as the underlying transaction and any invocation do not contravene the Act. The scope of guarantees eligible for the automatic route would be expanded, coupled with a new requirement for comprehensive reporting of all guarantees issued and invoked. A draft of the revised regulations is open for public comment until September 4, 2025, via the central bank's published submission channels.