Gazette Tracker
Gazette Tracker

Core Purpose

The Reserve Bank of India issues the Foreign Exchange Management (Borrowing and Lending) (Amendment) Regulations, 2025, to amend the existing Foreign Exchange Management (Borrowing and Lending) Regulations, 2018.

Detailed Summary

The Reserve Bank of India, exercising powers under sub-section (2) of Section 6 and Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), issued the Foreign Exchange Management (Borrowing and Lending) (Amendment) Regulations, 2025, on October 6, 2025. These regulations amend the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 (Notification No. FEMA.3(R)/2018-RB dated December 17, 2018), referred to as the 'Principal Regulations'. The amendment inserts a new clause (iv) after clause (iii) in regulation 7 sub-regulation A of the principal regulations. This new clause permits an AD bank to lend in Indian Rupees to a person resident outside India, specifically residents of Bhutan, Nepal, or Sri Lanka, including banks in these jurisdictions, for the purpose of cross-border trade transactions. The Principal Regulations were originally published in the Official Gazette vide G.S.R.No.1213(E) dated December 17, 2018, and subsequently amended by Notification G.S.R No.163(E) dated 26.02.2019, Notification No. FEMA. 3(R)2/2021-RB dated 24.05.2021, and Notification No. FEMA.3(R)(3)/2022-RB dated 28.07.2022. The notification was signed by Dr. Aditya Gaiha, Chief General Manager-in-Charge.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-MH-E-09102025-266826 EXTRAORDINARY PART III—Section 4 PUBLISHED BY AUTHORITY No. 663] NEW DELHI, MONDAY, OCTOBER 6, 2025/ASVINA 14, 1947 6686 GI/2025 (1) RESERVE BANK OF INDIA (Foreign Exchange Department ) NOTIFICATION Mumbai, the 6th October, 2025 Foreign Exchange Management (Borrowing and Lending) (Amendment) Regulations, 2025 No. FEMA 3(R)(4)/2025-RB.—In exercise of the powers conferred by sub-section (2) of Section 6 and Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank of India hereby makes the following amendments to the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 (Notification No. FEMA.3(R)/2018-RB dated December 17, 2018) (hereinafter referred to as 'the Principal Regulations'), namely: 1. Short Title & Commencement.- (1) These Regulations may be called the Foreign Exchange Management (Borrowing and Lending) (Amendment) Regulations, 2025. (2) They shall come into force from the date of notification in the official gazette. 2. In the principal regulations, in regulation 7 sub-regulation A, after clause (iii), the following clause (iv) shall be inserted, namely:- "An AD bank may lend in Indian Rupees to a person resident outside India being a resident in Bhutan, Nepal or Sri Lanka, including a bank in these jurisdictions, for cross border trade transactions." Dr. ADITYA GAIHA, Chief General Manager-in-Charge [ADVT.-III/4/Exty./397/2025-26] Footnote:The Principal Regulations were published in the Official Gazette vide G.S.R.No.1213(E) dated December 17, 2018, in Part II, Section 3, sub-Section (i) and subsequently amended vide the following, namely; Notification G.S.R No.163(E) dated 26.02.2019 Notification No. FEMA. 3(R)2/2021-RB 24.05.2021 Notification No. FEMA.3(R)(3)/2022-RB dated 28.07.2022 Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

Never miss important gazettes

Create a free account to save gazettes, add notes, and get email alerts for keywords you care about.

Sign Up Free