- within Strategy, Environment and International Law topic(s)
- with Senior Company Executives and HR
- with readers working within the Accounting & Consultancy and Law Firm industries
The RBI has, by way of A.P. (DIR Series) Circular No. 01 dated April 1, 2026, operationalised the reporting framework for guarantees under the Foreign Exchange Management (Guarantees) Regulations, 2026 (‘Guarantee Regulations’), read with the Master Direction – Reporting under the Foreign Exchange Management Act, 1999 (‘Master Direction’). Persons obligated to report guarantees in terms of Regulation 7 of the Guarantee Regulations must use the prescribed files available on the RBI website for submission to the Authorised Dealer bank (‘AD Bank’), namely:
- Form GRN Issue: For reporting issuance of guarantee;
- Form GRN Modification: For reporting changes in guarantee terms such as amount, extension, or pre-closure; and
- Form GRN Invocation: For reporting invocation of guarantee.
AD Banks are required to submit these returns to RBI within 30 calendar days from the end of the relevant quarter through the Centralised Information Management System (‘CIMS’). For each guarantee issuance reported by way of Form GRN Issue, the AD Bank must generate and provide a unique guarantee transaction number prior to filing, as per the CIMS operational guidelines.
For computation of late submission fees, the amount involved for delayed reporting of Form GRN Invocation will be liability created towards the surety upon invocation; and for delayed reporting of Form GRN Issue and Form GRN Modification, such amount will be treated as nil, since these returns do not capture flows.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
[View Source]