Bank guarantees for service imports permitted with conditions and documentary proof, and mandatory reporting upon invocation. Authorised Dealer Category I banks are permitted to issue bank guarantees for import of services provided the guarantee does not exceed the prescribed amount, the bank is satisfied as to the bonafides, documentary evidence of import of services is obtained, and the guarantee secures a direct contractual liability between a resident and a non resident; invocation requires the bank to report circumstances to the Chief General Manager in Charge, Foreign Exchange Department, Reserve Bank of India.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Bank guarantees for service imports permitted with conditions and documentary proof, and mandatory reporting upon invocation.
Authorised Dealer Category I banks are permitted to issue bank guarantees for import of services provided the guarantee does not exceed the prescribed amount, the bank is satisfied as to the bonafides, documentary evidence of import of services is obtained, and the guarantee secures a direct contractual liability between a resident and a non resident; invocation requires the bank to report circumstances to the Chief General Manager in Charge, Foreign Exchange Department, Reserve Bank of India.
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