Bank Guarantee on behalf of service importers — Instructions

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....s 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 vide Notification No. FEMA 151/2007-RB dated January 4, 2007] and A.P. (DIR Series) Circular No. 13 dated November 17, 2006, banks are allowed to issue guarantee....

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....the AD Category-I bank is satisfied about the bona fides 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 contractual liability arising out of a contract between a resident and a non-resident. 3. In the case of a Public Sector Company or a Department/ Undertaki....