The Reserve Bank of India on 24th May 2021 has published the Foreign Exchange Management (Borrowing and Lending) (Amendment) Regulations, 2021 to further amend Foreign Exchange Management (Borrowing and Lending) Regulations, 2018.
The Amendment is brought under regulation 7 which deals with Lending in Indian Rupees by a Person Resident in India in which a new sub-rule iii has been inserted as follows:
An Authorised Dealer 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.
