7B.5
- Document type
- Manual
- Dated
- Category
- Exchange Management Manual
Issue of Bank Guarantee
Issue of guarantees in favour of foreign lenders or suppliers (in the case of Suppliers Credits) requires approval of Reserve Bank. While granting approval for raising the foreign currency loan/credit, Reserve Bank will grant the required permission to the concerned authorised dealer. In the event of invocation of the guarantee, the concerned authorised dealer may make the necessary remittance without reference to Reserve Bank. A report should, however, be sent to Reserve Bank giving full details citing reference to the approval for furnishing the guarantee. A copy of the claim received from the overseas party should be enclosed with such report.