The new rules, i.e. Foreign Exchange Management (Guarantees) Regulations, expands the types of cross- border guarantees that can be issued under the automatic route. If the underlying transaction and any transaction resulting from the guarantee’s invocation comply with FEMA, they will be permitted without requiring specific RBI approval. It introduces a comprehensive reporting system, requiring all issued and invoked guarantees to be reported to the RBI. It also specifies conditions under which a person resident in India can act as a surety, principal debtor, or creditor. The comments/ feedback from stakeholders are invited.