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RBI: Notifies Regulation w.r.t borrowing and lending between Resident and Non- Resident

RBI notifies Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 (‘Regulations’) in order to regulate borrowing and lending between a Person Resident in India and a Person Resident outside India, in supersession of extant Notifications in this regard; Outlines prohibition on borrowings and lendings while adding that “use of Credit Card – in India by a person Resident outside India or outside India by a person Resident in India shall not be deemed as borrowing or lending in Indian Rupee/foreign exchange”; Details permissible – (i) borrowings (from outside India) and lendings, in Foreign Exchange by a Person Resident in India, and (ii) borrowings and lendings, in Indian Rupees by a Person Resident in India; Inter alia permits (i) continuance of loan granted to Resident individual, who subsequently becomes person Resident outside India, and (ii) a Resident individual to service loans taken overseas earlier as a person Resident outside India; Lastly clarifies that “any borrowing under erstwhile regulations can be continued as permitted up to the due date of repayment”