Import of Aircraft on Operating Lease - Security Deposits

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..... ed Dealer banks (ADs) is invited to the A.P. (DIR Series) Circular No.24 dated March 1, 2002 wherein ADs have been permitted to remit lease rentals and open letter of credit (LC) towards security deposit for acquisition of aircraft by airline companies on operating lease. 2. Airline companies in India have been approaching the Reserve Bank to allow remittances towards security deposit with less .....

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..... guarantee of an AD in India against the counter-guarantee of a reputed international bank abroad subject to following conditions: (i) The AD is satisfied about the bona fides of the transaction. The airline company has obtained necessary approval from appropriate authority like Ministry of Civil Aviation/Director General of Civil Aviation, Government of India for importing the aircraft/heli .....

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..... thousand only) per aircraft towards security deposit (for payment of lease rentals) with lessor subject to conditions (i) to (iv) in paragraph 3 above and a specific waiver of bank guarantee from the Ministry of Finance, Government of India. 5. Authorised Dealer banks may bring the contents of this circular to the notice of their constituents and customers concerned. 6. The directions contain .....

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