RBI operationalizes the reporting framework under Foreign Exchange Management (Guarantees) Regulations, 2026

The Reserve Bank of India (RBI), pursuant to the notification of the Foreign Exchange Management (Guarantees) Regulations, 2026 (Guarantee Regulations), has now prescribed the manner, formats and timelines for reporting cross-border guarantee transactions. 

As part of this framework, Regulation 7 of the Guarantee Regulations mandates periodic reporting of such guarantee transactions to the RBI. 

RBI has now operationalized the reporting framework by specifying three distinct reporting formats to capture the various stages of a guarantee:

• Form GRN Issue – for issuance of guarantee
• Form GRN Modification – for subsequent changes (amount, tenure, pre closure)
• Form GRN Invocation – for invocation of guarantee

Authorized dealer (AD) banks should submit returns to RBI within 30 days from the end of the relevant quarter through the CIMS (Centralised Information Management System) portal. 

For every guarantee issued, AD banks are required to generate and assign a unique Guarantee Transaction Number (GTN) before submission to RBI. Such GTN is to be quoted in all subsequent filings (modification or invocation), ensuring traceability and data consistency.

Further, RBI has also clarified the manner of computation of Late Submission Fee (LSF) in case of delays in reporting: 

• For GRN Invocation – LSF to be computed based on the amount invoked i.e., the actual liability crystallized 
• For GRN Issue and Modification – the amount involved should be treated as Nil for LSF computation purposes

The reporting framework has been made effective immediately, i.e., from 1 April 2026. 

Source: RBI A.P. (DIR Series) Circular No. 01 dated 1 April 2026