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ARTICLE · 10 JANUARY 2025

Cross Border Guarantees

JSA Advocates & Solicitors
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The Reserve Bank of India ("RBI") has identified instances where guarantees have been issued by persons residing outside India in favour of persons residing in India...

IndiaFinance and Banking
Anish Mashruwala
Anish Mashruwala
Pratish Kumar
Pratish Kumar
Madhur Bhatt
Madhur Bhatt
Anmol Narang
Anmol Narang
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The Reserve Bank of India ("RBI") has identified instances where guarantees have been issued by persons residing outside India in favour of persons residing in India, which are not permitted under the Foreign Exchange Management Act, 1999 ("FEMA") and its related regulations. Consequently, RBI, vide circular dated October 4, 2024, has issued directions to Authorised Dealer Category-I banks to ensure that guarantee contracts advised by them to, or on behalf of, their resident constituents are in accordance with FEMA and the extant regulations.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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