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RBI revamps ECB reporting forms under FEMA

Current · Source: Reserve Bank of India · RBI/2025-26/223 · issued 18 Feb 2026 · ~2 min read
Quick answerRBI has revised ECB reporting forms (ECB 1 and ECB 2) effective immediately, aligning them with the updated ECB Framework under the Foreign Exchange Management (Borrowing and Lending) (First Amendment) Regulations, 2026. Authorised persons must use the new formats from Annex I and Annex II of this circular.
The rule, in the simplest words
How it plays out — a real example

A forex & trade-finance officer in Indore is processing a loan from a foreign bank for a local jewelry company. She checks the RBI circular and sees that from February 18, 2026, she must use the new Form ECB 1 (Revised) from Annex I instead of the old one. She updates her system and tells the company's finance team to submit the new form so the loan is reported correctly and avoids any penalty.

What changed

The Reserve Bank has substituted Part V - Annex I and Part V - Annex II of the Master Direction on FEMA reporting with new formats for Form ECB 1 (Revised) and Form ECB 2. This follows the issuance of the Foreign Exchange Management (Borrowing and Lending) (First Amendment) Regulations, 2026 on February 9, 2026, which revised the overall ECB Framework.

What it means for you

Banks and authorised dealers must immediately adopt the revised ECB reporting forms to ensure compliance with the updated regulatory framework. Non-adherence could lead to reporting discrepancies and potential regulatory action. The changes reflect RBI's ongoing efforts to streamline external borrowing data collection and monitoring.

What you must do

Who it affects

Authorised Persons (banks and dealers in foreign exchange), Indian entities raising External Commercial Borrowings, Compliance and reporting teams handling FEMA returns

❓ Common questions

What is the effective date for using the new ECB forms?

The circular states the directions come into force with immediate effect from February 18, 2026. All ECB submissions from this date must use the revised forms.

Which specific forms have been revised?

Form ECB 1 (now called Revised Form ECB 1) and Form ECB 2, as detailed in Annex I and Annex II of the circular respectively.

Do these changes affect the underlying ECB regulations?

No, the circular only updates the reporting forms to align with the revised ECB Framework issued under the Foreign Exchange Management (Borrowing and Lending) (First Amendment) Regulations, 2026. The substantive borrowing rules remain as per that amendment.

📜 Read the original circular — full text as issued by RBI
RBI/2025-26/223 A.P. (DIR Series) Circular No. 23 February 18, 2026 All Authorised Persons Madam / Sir, Reporting under Foreign Exchange Management Act, 1999 – Returns pertaining to External Commercial Borrowing (ECB) Attention of Authorised Persons is invited to the Master Direction – Reporting under Foreign Exchange Management Act, 1999 . The Reserve Bank has issued the Foreign Exchange Management (Borrowing and Lending) (First Amendment) Regulations, 2026 dated February 09, 2026 (published in the official gazette on February 16, 2026) for revising the External Commercial Borrowing (ECB) Framework. The forms for returns pertaining to ECB, prescribed under the Master Direction ibid, have been modified in light of the revised ECB Framework. 2. In view of the above, Part V - Annex I and Part V - Annex II of the Master Direction – Reporting under Foreign Exchange Management Act, 1999 shall be substituted with the format given at Annex I (Form ECB 1 / Revised Form ECB 1) and Annex II (Form ECB 2) to this circular respectively. 3. Authorised Persons may bring the contents of the circular to the notice of their customers/ constituents concerned. 4. The directions contained in this circular have been issued under sections 10(4), 11(1) and 11(2) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law. 5. These directions shall come into force with immediate effect. Yours faithfully, (Dr. Aditya Gaiha) Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2025-26/223 · issued 18 Feb 2026. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
💻 IT / Systems
  • Update internal systems and procedures to capture data as per the new reporting templates.
📜 Compliance
  • Replace existing ECB reporting forms with the new formats provided in Annex I (Form ECB 1) and Annex II (Form ECB 2) of this circular.
  • Inform all customers and constituents dealing with ECB about the revised forms and immediate effective date.
  • Ensure all ECB submissions from February 18, 2026 onwards use the revised forms.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (Authorised Persons (banks and dealers in foreign exchange), Indian entities raising External Commercial Borrowings, Compliance and reporting teams handling FEMA returns), your first concrete step on “RBI revamps ECB reporting forms under FEMA” is: “Replace existing ECB reporting forms with the new formats provided in Annex I (Form ECB 1) and Annex II (Form ECB 2) of this circular.” (RBI issued this 18 Feb 2026).

  1. Circular: RBI/2025-26/223 -- RBI revamps ECB reporting forms under FEMA
  2. Issued: 18 Feb 2026
  3. Action required: Replace existing ECB reporting forms with the new formats provided in Annex I (Form ECB 1) and Annex II (Form ECB 2) of this circular.
  4. Action required: Inform all customers and constituents dealing with ECB about the revised forms and immediate effective date.
  5. Action required: Update internal systems and procedures to capture data as per the new reporting templates.
  6. Action required: Ensure all ECB submissions from February 18, 2026 onwards use the revised forms.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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BankPulse Compliance Evidence Pack — generated 02 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13308&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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