Authorised dealer guarantees permitted for cross border obligations, subject to Reserve Bank conditions and required counter guarantees.

Regulation 4 authorises authorised dealers to issue guarantees, letters of undertaking or standby letters of credit for cross border debts and obligations: for residents of India in respect of exports, approved deferred payment imports, Foreign Trade Policy permitted imports and margin obligations for approved commodity hedging (subject to RBI terms), and for non residents in bona fide trade transactions or as counter guarantees (subject to counter guarantees by internationally reputed banks), with additional routine business guarantees, prescribed ceilings, and RBI or government approvals where required.

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