♦ The Reserve Bank of India (RBI) has issued the Foreign Exchange Management (Guarantees) Regulations, 2026, providing a comprehensive framework for guarantees involving persons resident outside India. The RBI has directed all Authorised Dealer Category-I banks to follow the new regulations while facilitating such guarantees and to ensure compliance with regulatory guidelines issued by the Department of Regulation.

♦ Further, guarantee-related provisions in several existing Master Directions, including those on External Commercial Borrowings, Trade Credits, Export and Import of Goods and Services, and Reporting under FEMA, 1999, have been amended.

♦ Authorised dealer banks have been advised to bring the contents of the circular to the notice of their customers. RBI said the directions have been issued under the provisions of the Foreign Exchange Management Act, 1999.