As part of the Reserve Bank of India’s updated framework under the Foreign Exchange Management (Guarantees) Regulations, 2026, dated January 06, 2026, new reporting obligations have been introduced for all guarantees involving cross‑border parties. These requirements are effective from Quarter ended March 2026
Reporting Requirements
Under Clause 7 of the FEMA regulation, reporting is mandatory for all cross‑border guarantees (BGs) that are issued, received, amended, or invoked by the client, when acting as a creditor, debtor, or surety, unless already reported by the Authorized Dealer (AD) bank.
The responsible party must ensure reporting within the prescribed timelines. Reporting must be submitted to your AD bank every quarter, within 15 days from the end of the quarter. Delayed reporting will attract a Late Submission Fee (LSF) as per RBI guidelines.
Who Must Report?
1. Surety / Guarantor (Resident in India)
If you as a resident entity are providing the guarantee.
Example: A resident corporate issuing a guarantee in favor of an overseas entity.
2. Principal Debtor / Applicant (Resident in India)
If you (Principal Debtor) have arranged a guarantee wherein the surety is a non-resident.
Example: A guarantee issued by an overseas parent or bank for credit facilities availed in India.
3. Creditor / Beneficiary (Resident in India)
If both the surety and principal debtor are non-residents, or if you have arranged the guarantee.
Example: Receipt of a guarantee from a foreign bank for obligations of an overseas entity.
Pushkar Mer 