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<h1>FEMA 1999 amendment allows authorized banks to lend INR to residents of Bhutan, Nepal, Sri Lanka for cross-border trade</h1> Under powers conferred by the Foreign Exchange Management Act, 1999, the central bank amended the Borrowing and Lending Regulations to permit authorized dealer banks to lend in Indian rupees to persons resident in Bhutan, Nepal or Sri Lanka, including banks in those jurisdictions, for cross-border trade transactions; the amendment is titled the 2025 Amendment Regulations and takes effect from the date of its publication in the official gazette.