Import of Aircraft on Operating Lease - Security Deposits

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....r, Import of Aircraft on Operating Lease - Security Deposits Attention of Authorised Dealer banks (ADs) is invited to the A.P. (DIR Series) Circular No.24 dated March 1, 2002 wherein ADs have been permitted to remit lease rentals and open letter of credit (LC) towards security deposit for acquisition of aircraft by airline companies on operating lease. 2. Airline companies in India have b....

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.... a standby letter of credit or a guarantee from a reputed international bank abroad or a guarantee of an AD in India against the counter-guarantee of a reputed international bank abroad subject to following conditions: (i) The AD is satisfied about the bona fides of the transaction. • The airline company has obtained necessary approval from appropriate authority like Ministry of Ci....

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....the Government of India/State Government/s, ADs may permit remittance of amount exceeding USD 1,00,000 (US Dollar one hundred thousand only) per aircraft towards security deposit (for payment of lease rentals) with lessor subject to conditions (i) to (iv) in paragraph 3 above and a specific waiver of bank guarantee from the Ministry of Finance, Government of India. 5. Authorised Dealer banks ma....