Mumbai: Banks can now issue guarantees to service importers for an amount of up to $5,00,000 or equivalent, following the move by the Reserve Bank of India to increase the limit.
In a notification, the RBI increased the limit for issuing bank guarantees from the earlier $1,00,000 or equivalent. Banks are allowed to issue guarantees in favour of a non-resident service provider, on behalf of a resident customer who is a service importer.
Source : Business Line