No longer current — withdrawn, no replacement on file yet
RBI's own words: “it has now been decided to withdraw the instructions issued vide A.P. (DIR Series) Circular No. 03 dated April 01, 2026” — RBI/2026-27/14
Source: Reserve Bank of India · RBI/2026-27/02 · issued 01 Apr 2026 · ~2 min read
Quick answerRBI has introduced three new forms (GRN Issue, Modification, Invocation) for reporting guarantees under FEMA 8 (R). Banks must submit these returns via CIMS within 30 calendar days after each quarter. Late fees apply only for delayed invocation reports.
The rule, in the simplest words
Banks must use three new forms (GRN Issue, GRN Modification, GRN Invocation) to report guarantees under FEMA [Foreign Exchange Management Act, a law that regulates foreign exchange in India].
Each guarantee issuance needs a unique Guarantee Transaction Number before submission.
Banks must submit these returns within 30 calendar days after each quarter via CIMS [Centralised Information Management System, a system used by banks to submit reports].
Late fees apply only for delayed invocation reports, not for issue or modification forms.
How it plays out — a real example
A compliance officer in Mumbai needs to update the bank's internal systems to capture and report guarantee data using the new forms and unique transaction numbers. She must also ensure that all guarantee returns are submitted through CIMS within 30 calendar days from the end of each quarter to avoid penalties, especially for delayed invocation reports. This will help the bank stay compliant with the new RBI regulations.
What changed
RBI has introduced three new forms for guarantee reporting: GRN Issue, GRN Modification, and GRN Invocation. Banks must now assign a unique Guarantee Transaction Number for each issuance before submission. Late submission fees are computed only for delayed invocation reports, not for issue or modification forms.
What it means for you
Banks need to update their internal systems to capture and report guarantee data using the new forms and unique transaction numbers. The 30-day quarterly submission timeline via CIMS is now mandatory. Since late fees apply only to invocation delays, banks should prioritize timely reporting of guarantee invocations to avoid penalties.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Update your guarantee reporting workflow to use Form GRN Issue, GRN Modification, and GRN Invocation as per RBI's new formats.
Ensure a unique Guarantee Transaction Number is generated and assigned for each new guarantee issuance before submission.
Submit all guarantee returns through CIMS within 30 calendar days from the end of each quarter.
Inform your customers about the new reporting requirements and forms.
Review your late submission fee computation process to apply fees only for delayed GRN Invocation reports.
Who it affects
All Authorised Dealer Banks handling FEMA guarantee transactions, Customers and constituents who issue or modify guarantees under FEMA, Compliance and reporting teams within banks
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What are the new forms for guarantee reporting?
RBI has introduced three forms: Form GRN Issue for reporting guarantee issuance, Form GRN Modification for changes in guarantee terms, and Form GRN Invocation for reporting invocation of guarantees.
What is the deadline for submitting guarantee returns?
Authorised dealer banks must submit the returns to RBI within 30 calendar days from the end of the respective quarter through CIMS.
How is late submission fee calculated for delayed reporting?
For delayed Form GRN Invocation, the fee is based on the liability amount created on invocation. For delayed Form GRN Issue or Modification, the amount is considered nil, so no late fee applies.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
RBI’s words: “it has now been decided to withdraw the instructions issued vide A.P. (DIR Series) Circular No. 03 dated April 01, 2026”
📜 Read the original circular — full text as issued by RBI
RBI/2026-27/02
A.P. (DIR Series) Circular No. 01
April 01, 2026
All Authorised Persons
Madam / Sir,
Reporting under Foreign Exchange Management Act, 1999 – Returns pertaining to
Foreign Exchange Management (Guarantees) Regulations, 2026
Attention of Authorised Persons is invited to Foreign Exchange Management (Guarantees) Regulations, 2026 [FEMA 8 (R)] and Master Direction – Reporting under Foreign Exchange Management Act, 1999 .
2. A person having the obligation to report a guarantee in terms of Regulation 7 of FEMA 8 (R), may use the following files provided on the RBI website (List of Returns Submitted to RBI) for submissions to the authorised dealer bank:
a)‘Form GRN Issue’ – For reporting issuance of Guarantee.
b)‘Form GRN Modification’ – For reporting any subsequent change in guarantee terms, namely - guarantee amount, extension of period or pre-closure.
c)‘Form GRN Invocation’ – For reporting invocation of guarantee.
3. The authorised dealer bank shall thereby submit the returns to the Reserve Bank of India within thirty calendar days from the end of the respective quarter through Centralised Information Management System (CIMS) (URL: https://sankalan.rbi.org.in ). Operational guidelines are being provided therein.
4. For each guarantee issuance, reported through ‘Form GRN Issue’, the authorised dealer bank shall provide a unique Guarantee Transaction Number before submission of the return to the Reserve Bank in the manner provided in the operational guidelines
5. For the purpose of computation of Late Submission Fees for delayed reporting of ‘Form GRN Invocation’, the amount involved in the delayed reporting (A) shall be the amount of liability created towards the surety on invocation. For Delayed reporting of ‘Form GRN Issue’ and ‘Form GRN Modification’, ‘A’ shall be considered to be ‘Nil’ since these returns do not capture flows.
6. Authorised Persons may bring the contents of the circular to the notice of their customers/ constituents concerned.
7. 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.
8. 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/2026-27/02 · issued 01 Apr 2026. The plain-English explanation above is BankPulse’s own independent summary.
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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=13358&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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