Non-resident guarantees for rupee facilities permit specified repayment, recovery, repatriation rules and credit enhancement conditions. Non-resident guarantees for rupee fund-based and non-fund-based facilities do not attract foreign exchange provisions until invoked; guarantors may discharge liabilities from rupee balances in India, by remittance, or by debit to FCNR(B)/NRE accounts. Recovered amounts may be repatriated to FCNR(B)/NRE/NRO accounts subject to the rupee equivalent limit of amounts paid by the guarantor. Credit enhancement by eligible non-residents for rupee capital market instruments is permitted for borrowers eligible under the automatic ECB route, subject to minimum three-year average maturity, cost caps, hedging and reporting conditions.
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.
Non-resident guarantees for rupee facilities permit specified repayment, recovery, repatriation rules and credit enhancement conditions.
Non-resident guarantees for rupee fund-based and non-fund-based facilities do not attract foreign exchange provisions until invoked; guarantors may discharge liabilities from rupee balances in India, by remittance, or by debit to FCNR(B)/NRE accounts. Recovered amounts may be repatriated to FCNR(B)/NRE/NRO accounts subject to the rupee equivalent limit of amounts paid by the guarantor. Credit enhancement by eligible non-residents for rupee capital market instruments is permitted for borrowers eligible under the automatic ECB route, subject to minimum three-year average maturity, cost caps, hedging and reporting conditions.
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