The Reserve Bank of India(RBI) has published the latest Foreign Exchange Management (Borrowing and Lending) (Amendment) Regulations on May 24th, 2021.
As per the new amendment, “An Authorised Dealer (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” The ‘Government Security’ mentioned in the amendment 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.
The new amendment is subject to such terms and conditions as may be specified by the Reserve Bank of India. These have to effect on the date of publication in the Official Gazette i.e. May 24, 2021.
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