What changed
RBI has introduced three new forms for guarantee reporting: GRN Issue, GRN Modification, and GRN Invocation. Banks must now assign a unique Guarantee Transaction Number for each issuance before submission. Late submission fees are computed only for delayed invocation reports, not for issue or modification forms.
What it means for you
Banks need to update their internal systems to capture and report guarantee data using the new forms and unique transaction numbers. The 30-day quarterly submission timeline via CIMS is now mandatory. Since late fees apply only to invocation delays, banks should prioritize timely reporting of guarantee invocations to avoid penalties.
What you must do
- Update your guarantee reporting workflow to use Form GRN Issue, GRN Modification, and GRN Invocation as per RBI's new formats.
- Ensure a unique Guarantee Transaction Number is generated and assigned for each new guarantee issuance before submission.
- Submit all guarantee returns through CIMS within 30 calendar days from the end of each quarter.
- Inform your customers about the new reporting requirements and forms.
- Review your late submission fee computation process to apply fees only for delayed GRN Invocation reports.
Who it affects
All Authorised Dealer Banks handling FEMA guarantee transactions, Customers and constituents who issue or modify guarantees under FEMA, Compliance and reporting teams within banks
What are the new forms for guarantee reporting?
RBI has introduced three forms: Form GRN Issue for reporting guarantee issuance, Form GRN Modification for changes in guarantee terms, and Form GRN Invocation for reporting invocation of guarantees.
What is the deadline for submitting guarantee returns?
Authorised dealer banks must submit the returns to RBI within 30 calendar days from the end of the respective quarter through CIMS.
How is late submission fee calculated for delayed reporting?
For delayed Form GRN Invocation, the fee is based on the liability amount created on invocation. For delayed Form GRN Issue or Modification, the amount is considered nil, so no late fee applies.