Issue of Bank Guarantee on behalf of service importers

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Category - I Banks Madam / Sir, Issue of Bank Guarantee on behalf of service importers Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to Regulation 4 of the Foreign Exchange Management (Guarantees) Regulations, 2000 notified vide Notification No. FEMA 8/2000-RB dated May 3, 2000, as amended from time to time. In terms of Regulation 4(3)(iv) thereof [amended vi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....eeding USD 500,000 or its equivalent in favour of a non-resident service provider, on behalf of a resident customer who is a service importer, provided: a. the AD Category-I bank is satisfied about the bonafides of the transaction; b. the AD Category-I bank ensures submission of documentary evidence for import of services in the normal course; and c. the guarantee is to secure a direct co....