The Reserve Bank of India has directed authorised dealer category I banks to apply the Foreign Exchange Management (Borrowing and Lending) (First Amendment) Regulations, 2026 when facilitating borrowing and lending transactions covered by these rules. The amendments incorporate changes to the External Commercial Borrowing (ECB) framework that were previously issued in draft for public feedback on 3 October 2025 and consolidate ECB provisions into the regulations. To align supporting guidance with the consolidated framework, paragraphs 1 to 12 of the Master Direction on External Commercial Borrowings, Trade Credits and Structured Obligations will be deleted, along with paragraph 2 of the Master Direction on Indian rupee borrowing and lending between persons resident in India and non-resident Indians/persons of Indian origin, and Part I of the ECB and trade credits FAQs. Banks are asked to notify affected customers, and the directions are issued under sections 10(4), 11(1) and 11(2) of the Foreign Exchange Management Act, 1999.
Reserve Bank of India 2026-02-16
Reserve Bank of India gazettes amendments to foreign exchange borrowing and lending rules and consolidates ECB requirements into regulations
The Reserve Bank of India mandates authorised dealer category I banks to implement the Foreign Exchange Management (Borrowing and Lending) (First Amendment) Regulations, 2026, affecting borrowing and lending transactions. These amendments consolidate the External Commercial Borrowing (ECB) framework and require deleting specific paragraphs from the Master Directions and FAQs. Banks must inform affected customers, with directions issued under the Foreign Exchange Management Act, 1999.