Non-resident guarantees like letters of credit & performance guarantees for Indian residents not allowed under FEMA: Banks to ensure compliance.

Non-resident guarantees like letters of credit & performance guarantees for Indian residents not allowed under FEMA: Banks to ensure compliance. https://www.taxtmi.com/highlights?id=81995 RBI has observed instances of non-resident guarantees, including standby letters of credit and performance guarantees, issued to persons resident in India, which are not permitted under FEMA regulations. Authorized Dealer Category-I banks must ensure guarantee contracts advised to or on behalf of their resident constituents comply with FEMA regulations. Banks are directed to notify their constituents about this circular issued u/ss 10(4) and 11(1) of FEMA, 1999. en-us Sat, 05 Oct 2024 18:54:37 +0530 Sat, 05 Oct 2024 18:54:37 +0530 TaxTMI RSS Generator Non-resident guarantees like letters of credit & performance guarantees for Indian residents not allowed under FEMA: Banks to ensure compliance. https://www.taxtmi.com/highlights?id=81995 RBI has observed instances of non-resident guarantees, including standby letters of credit and performance guarantees, issued to persons resident in India, which are not permitted under FEMA regulations. Authorized Dealer Category-I banks must ensure guarantee contracts advised to or on behalf of their resident constituents comply with FEMA regulations. Banks are directed to notify their constituents about this circular issued u/ss 10(4) and 11(1) of FEMA, 1999. Highlights FEMA Sat, 05 Oct 2024 18:54:37 +0530 https://www.taxtmi.com/highlights?id=81995