Amendments to FEMA Borrowing and Lending Regulations: The amendments substitute Regulation 2 with an expanded definitions clause, and insert Regulation 3A restricting end-use of borrowed funds for specified activities such as chit funds, nidhi companies, real estate business (with conditions), certain agricultural activities, trading in TDRs, securities transactions (except strategic corporate actions), and repayment of restricted domestic loans. The revised Schedule I lays down a comprehensive External Commercial Borrowing (ECB) framework covering eligible borrowers and lenders, borrowing limits, maturity, cost, security, refinancing, conversion into non-debt instruments, reporting requirements, and treatment of untraceable borrowers. It permits ECB in foreign currency or INR, prescribes a minimum average maturity period, and details reporting through Forms ECB 1 and ECB 2 via designated AD Category I banks.
(Link: FEMA Regulations Amendment Notification Dated 09/02/2026)