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of <h1>RBI Authorizes Shipping Agents to Guarantee Foreign Principals' Debts Under Section 26(6) of FERA 1973</h1> The Reserve Bank of India, under section 26(6) of the Foreign Exchange Regulation Act, 1973, authorizes shipping agents to provide guarantees for debts or liabilities of their foreign shipping principals. These guarantees can be made in favor of officers or authorities appointed under the Income-tax Act, 1961, the Customs Act, 1962, the Major Port Trust Act, 1963, or any other Central or State Act. This permission is subject to instructions that may be issued periodically.
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