The Reserve Bank of India (RBI) on October 04, 2024, issued the notification regarding the Due diligence in relation to non-resident guarantees availed by person’s resident in India.
The following has been stated namely: -
• AD Category-I banks shall ensure that guarantee contracts advised by them to, or on behalf of their resident constituents are in accordance with the FEMA regulations.
[Notification No. RBI/2024-25/79]