The Reserve Bank of India notified the Foreign Exchange Management (Guarantees) Regulations, 2026, replacing the earlier approval-heavy regime with a principle-based system that significantly expands the Automatic Route for Indian residents. Most guarantees involving non-residents can now be issued without prior RBI approval, provided the underlying transaction is FEMA-compliant. The regulations introduce a unified quarterly reporting framework, a new Form GRN for all guarantee-related reporting, and a standardized Late Submission Fee for delays. While easing operational burden, the rules tighten disclosure and monitoring to ensure full regulatory visibility of cross-border guarantee exposures.