What changed
The Reserve Bank has substituted Part V - Annex I and Part V - Annex II of the Master Direction on FEMA reporting with new formats for Form ECB 1 (Revised) and Form ECB 2. This follows the issuance of the Foreign Exchange Management (Borrowing and Lending) (First Amendment) Regulations, 2026 on February 9, 2026, which revised the overall ECB Framework.
What it means for you
Banks and authorised dealers must immediately adopt the revised ECB reporting forms to ensure compliance with the updated regulatory framework. Non-adherence could lead to reporting discrepancies and potential regulatory action. The changes reflect RBI's ongoing efforts to streamline external borrowing data collection and monitoring.
What you must do
- Replace existing ECB reporting forms with the new formats provided in Annex I (Form ECB 1) and Annex II (Form ECB 2) of this circular.
- Inform all customers and constituents dealing with ECB about the revised forms and immediate effective date.
- Update internal systems and procedures to capture data as per the new reporting templates.
- Ensure all ECB submissions from February 18, 2026 onwards use the revised forms.
Who it affects
Authorised Persons (banks and dealers in foreign exchange), Indian entities raising External Commercial Borrowings, Compliance and reporting teams handling FEMA returns
What is the effective date for using the new ECB forms?
The circular states the directions come into force with immediate effect from February 18, 2026. All ECB submissions from this date must use the revised forms.
Which specific forms have been revised?
Form ECB 1 (now called Revised Form ECB 1) and Form ECB 2, as detailed in Annex I and Annex II of the circular respectively.
Do these changes affect the underlying ECB regulations?
No, the circular only updates the reporting forms to align with the revised ECB Framework issued under the Foreign Exchange Management (Borrowing and Lending) (First Amendment) Regulations, 2026. The substantive borrowing rules remain as per that amendment.