RESERVE BANK OF INDIA
(FOREIGN EXCHANGE DEPARTMENT)
CENTRAL OFFICE
MUMBAI
Notification No. FEMA 206 / 2010-RB.
June 1, 2010
Foreign Exchange Management (Guarantees) (
Amendment) Regulations, 2010
In exercise of the powers conferred by clause (j) of sub-section (3) of
Section 6, and sub section (2) of Section 47 of the Foreign Exchange Management
Act, 1999 (42 of 1999), the Reserve Bank of India hereby makes the following
amendments in the Foreign Exchange Management (Guarantees) Regulations, 2000
(Notification No.FEMA 8/2000-RB dated May 3, 2000), namely:-
1. Short title and commencement
(a) These Regulations may be called the Foreign Exchange Management
(Guarantees) (Amendment) Regulations, 2010.
(b) They shall come into force from the dates specified in these regulations.
2. Amendment of the Regulations :
In the Foreign Exchange Management (Guarantees) Regulations, 2000
(Notification No.FEMA 8/2000-RB dated May 3, 2000), (hereinafter referred to as
‘the principal regulations’), -
3. Amendment of Regulation 5
In the Foreign Exchange Management (Guarantees) Regulations, 2000
(Notification No. FEMA 8/2000-RB) dated May 3, 2000, in regulation 5, after
clause (d), the following new clause shall be inserted and shall be deemed to
have been inserted with effect from April 20, 2009, namely,-
“(e) a bank which is an authorised dealer may, subject to the directions
issued by the Reserve Bank in this behalf, permit a person resident in India to
issue corporate guarantee in favour of an overseas lessor for financing imports
through operating lease effected in conformity with the Foreign Trade Policy in
force and under the provisions of the Foreign Exchange Management (Current
Account Transactions) Rules, 2000 framed by Government of India vide
Notification No G.S.R. 381 (E) dated May 3, 2000 and the directions issued by
Reserve Bank under Foreign Exchange Management Act, 1999 from time to time.
( Salim Gangadharan )
Chief General Manager-in-charge
Foot Note:
(i) It is clarified that no person will be adversely affected as a result of
retrospective effect being given to these regulations.
(ii) The Principal Regulations were published in the Official Gazette vide No.
G.S.R. No.391 (E) dated May 5, 2000 in Part II, Section 3, Sub-Section (i) and
subsequently amended vide :
- No. G.S.R.575 (E) dated 19-8-2002
- No. G.S.R.745 (E) dated 16-11-2004
- No. G.S.R.61 (E) dated 9-2-2005
- No. G.S.R.196 (E) dated 14-3-2007
- No. G.S.R.300 (E) dated 01/05/2009
- No. G.S.R.298 (E) dated 01/05/2009