Reporting under FEMA – Guarantees Regulations, 2026
Reporting Requirements under the FEMA (Foreign Exchange Management Act, 1999) – Guarantees Regulations, 2026
Attention of Authorised Persons is invited to the provisions of the Foreign Exchange Management (Guarantees) Regulations, 2026 and the Master Direction – Reporting under Foreign Exchange Management Act, 1999 issued by the Reserve Bank of India.
Reporting Forms for Guarantees: Any person required to report a guarantee under Regulation 7 of the above regulations may use the following forms available on the RBI website under the section “List of Returns Submitted to RBI”, and submit them to their authorised dealer bank:
- Form GRN Issue – To report the issuance of a guarantee.
- Form GRN Modification – To report any subsequent changes in the terms of the guarantee, such as revision in the guarantee amount, extension of validity period, or early closure.
- Form GRN Invocation – To report cases where the guarantee has been invoked.
Submission by Authorised Dealer Banks: After receiving the relevant forms, the authorised dealer bank must submit the returns to the Reserve Bank of India within 30 calendar days from the end of the respective quarter through the Centralised Information Management System (CIMS) available at the RBI portal.
Unique Guarantee Transaction Number: For every guarantee reported through Form GRN Issue, the authorised dealer bank is required to generate and assign a Unique Guarantee Transaction Number (GTN) before submitting the return to the RBI, in accordance with the operational guidelines provided in the system.
Late Submission Fee (LSF): For the purpose of calculating Late Submission Fees (LSF) in case of delayed reporting:
- For Form GRN Invocation, the amount considered will be the liability arising on invocation of the guarantee.
- For Form GRN Issue and Form GRN Modification, the amount involved for LSF calculation will be treated as Nil, as these forms do not involve any actual foreign exchange flow.
Communication to Customers: Authorised Persons are advised to ensure that the contents of this circular are properly communicated to their customers and concerned constituents.
Legal Authority and Applicability: These instructions have been issued under the powers conferred by Sections 10(4), 11(1), and 11(2) of the Foreign Exchange Management Act, 1999. The directions are issued without affecting any permissions or approvals that may be required under other applicable laws.
The provisions of this circular come into effect immediately.
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