Guarantee eligibility permits resident parties to act as sureties or principal debtors subject to lawful underlying transactions and exceptions. A person resident in India may act as a surety or principal debtor for a guarantee where the underlying transaction is not prohibited and the parties are ... Summary
Foreign Exchange Management (Borrowing and Lending) Regulations, 2018
Guarantee eligibility permits resident parties to act as sureties or principal debtors subject to lawful underlying transactions and exceptions.
A person resident in India may act as a surety or principal debtor for a guarantee where the underlying transaction is not prohibited and the parties are eligible to lend to and borrow from each other. This eligibility condition is inapplicable to specified authorised dealer bank guarantees backed by a counter-guarantee or fully secured deposit, certain guarantees by Indian agents of foreign shipping or airline companies, and guarantees where both parties are resident in India.
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