Foreign Exchange Management (Borrowing and Lending) (Amendment) Regulations, 2021 comes into force

Reserve Bank of India has notified Foreign Exchange Management (Borrowing and Lending) (Amendment) Regulations, 2021 vide notification dated May 24, 2021. The Notification makes the following amendment in regulation 7A of Foreign Exchange Management (Borrowing and Lending) Regulations, 2018, after clause (ii) following clause has been inserted:

iii) An AD in India may lend to a person resident outside India for making margin payments in respect of settlement of transactions involving Government Securities by the person resident outside India, subject to such terms and conditions as may be specified by the Reserve Bank.

Explanation: The expression ‘Government Security’ shall have the same meaning as assigned to it in Section 2(f) of Government Securities Act, 2006, and the word ‘securities’ shall be construed accordingly.”

 

Read the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 HERE

 

*Tanvi Singh, Editorial Assistant has put this story together.

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