RBI issues Foreign Exchange Management - Borrowing and Lending regulations
The Reserve Bank of India (RBI) has issued the Foreign Exchange Management (Borrowing and Lending) (First Amendment) Regulations, 2026. The amended regulations have rationalised the ECB framework by expansion of eligible borrower and recognised lender base, rationalisation of borrowing limits and restrictions on average maturity period, removal of restrictions on the cost of borrowing for ECBs, review of end-use restrictions and simplification of reporting requirements. The regulations have been issued after examining and suitably including feedback received from the stakeholders on the draft regulations published on the Banks website vide Press Release dated October 03, 2025.
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