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Guarantee regulations under Foreign Exchange Management Act (FEMA), 1999 – Draft for feedback

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....uarantee regulations under Foreign Exchange Management Act (FEMA), 1999 – Draft for feedback <br>FEMA & RBI<br>Dated:- 18-8-2025<br><BR>Reserve Bank of India has been reviewing and rationalising the....

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.... regulations issued under FEMA, 1999 with an intent to promote ease of doing business. On a review, it has been decided to rationalise regulations pertaining to guarantees issued under FEMA, 1999. Sal....

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....ient features of proposed regulations are as under: a. The regulations are principle based and in general guarantees involving cross border transactions will be under automatic route provided that u....

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....nderlying transaction, and the transactions resulting from invocation of guarantee are not in contravention of FEMA, 1999; b. The universe of guarantees enabled under automatic route is being expand....

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....ed, and therefore a comprehensive reporting of all guarantees, issued and invoked, is proposed to be introduced. The draft regulations under FEMA are available for public response. Comments/feedback....

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.... on the draft regulations may be submitted through the respective link under the 'Connect 2 Regulate' Section available on the RBI's website or may be forwarded via email by September 04, 2025, with t....

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....he subject line "Feedback on draft guarantee regulations under FEMA, 1999". (Puneet Pancholy)&nbsp;&nbsp; Chief General Manager<BR> News - Press release - PIB....