Payment to person resident outside India on invocation of guarantee - 029/2000 - Foreign Exchange Management

Payment to person resident outside India on invocation of guarantee Reserve Bank of India (Exchange Control Department) Central Office Mumbai - 400 001 Notification No.FEMA/ 29 /RB-2000. dated September 26, 2000 Published in the Official Gazette of Government of India - Extraordinary - Part-II, Section 3, Sub-Section (i) dated 10.11.2000 - G.S.R. No. 860(E) In pursuance of the provisions of Section 3 of the Foreign Exchange Management Act, 1999 (42 of 1999), and in partial modification of its Notification No.FEMA/16/RB-2000 dated 3 rd May 2000, (hereinafter referred to as 'the said Notification'), the Reserve Bank hereby directs that the said Notification shall with immediate effect be amended as under, namely :- After paragraph (2) of the said Notification, the following paragraph shall be added, namely:- '(2A) a person resident in India being the principal debtor, to make payment to a person resident outside India being a guarantor, such payment being by way of reimbursement of the payment made to the resident creditor by the non-resident guarantor under the guarantee furnished by him on behalf of the principal debtor; Provided that the amount payable by way of reimbursement by the resident principal debtor shall not exceed the rupee equivalent of the amount paid by the non-resident guarantor under the guarantee.' Sd/- D.P. SARDA(Executive Director)