Foreign Exchange Management (Borrowing and lending) (Amendment) Regulations, 2021 - FEMA. 3(R)2/2021-RB

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<h1>RBI Amends Foreign Exchange Rules: Authorized Dealers Can Lend for Margin Payments on Government Securities Abroad.</h1> The Reserve Bank of India has amended the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018, under the Foreign Exchange Management Act, 1999. Effective from its publication date, the amendment introduces a new provision allowing Authorized Dealers (AD) in India to lend to persons residing outside India for margin payments related to transactions involving Government Securities. This lending is subject to terms and conditions specified by the Reserve Bank. The definition of 'Government Security' follows the Government Securities Act, 2006.

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