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The RBI Released The Foreign Exchange Management (Borrowing and Lending) First Amendment Regulations, 2026
Last Updated: 17th February 2026 - 03:07 pm
Summary:
The Reserve Bank of India has released the Foreign Exchange Management (Borrowing and Lending) (First Amendment) Regulations, 2026. These rules change the rules for external commercial borrowing based on feedback from stakeholders that was made public on October 3, 2025.
The Reserve Bank of India has announced the Foreign Exchange Management (Borrowing and Lending) (First Amendment) Regulations, 2026. These rules change the way external commercial borrowing (ECB) works.
RBI said in a notice in 2026 that the new rules make the ECB framework more logical by adding more borrowers and lenders who can participate. The central bank also revised borrowing limits and restrictions on the average maturity period for ECBs.
Key Changes To ECB Framework
According to the RBI, the amendment removes restrictions on the cost of borrowing for external commercial borrowings. The central bank further reviewed end-use restrictions applicable to ECB proceeds and simplified reporting requirements under the framework.
The regulator said the changes were made after examining feedback received from stakeholders on the draft regulations that were published on the RBI’s website through a press release dated October 3, 2025.
RBI stated that the objective of the amendment is to streamline the borrowing and lending regulations under the Foreign Exchange Management Act framework governing cross-border transactions.
Stakeholder Consultation Process
The draft regulations were placed in the public domain on October 3, 2025, and comments were invited from stakeholders, according to the RBI press release. The central bank said it examined the feedback before issuing the final amendment regulations in 2026.
The new rules are part of the RBI's ongoing review of the rules for managing foreign exchange that apply to Indian companies that borrow and lend money abroad.
The Foreign Exchange Management (Borrowing and Lending) (First Amendment) Regulations, 2026, have been issued, and the RBI has said that the updated rules are now in effect under the Foreign Exchange Management Act.
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