NTF. NO. FEMA 112/2004-RB, DT. 06/03/2004

Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) (Amendment) Regulations, 2004
Guarantee of a Bank of International Repute Required for Loan above US $ 100,000

G.S.R 208(E). - In exercise of the powers conferred by clause (d) of Sub-section 3 of Section 6 of Sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) and in partial modification of Notification No. FEMA-3/2000-RB dated May 3, 2000, as amended from time to time, the Reserve Bank of India makes the following Regulations to amend the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000, namely:-

1. Short title and commencement :-

(i) These Regulations may be called the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) (Amendment) Regulations, 2004.

(ii) They shall come into force on their publication in the Official Gazette.

2. Amendment to the Regulations:-

In the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000, for the proviso in sub-regulation 4 of regulation 5, the following proviso shall be substituted:

“Provided that where the amount of loan exceeds U S $ 100,000, a guarantee of a bank of international repute situated outside India is provided by the overseas borrower in favour of the of the lender."

Sd/-
Shyamala Gopinath
Executive Director

[F. No. 1/23/EC/2000-Vol.II]

Footnote: The Principal Regulations were published in the Official Gazette vide G.S.R. No. 386(E) dated May 5, 2000 in Part II, Section 3, Sub-section (i) and subsequently amended vide G.S.R. No.674(E) dated August 25, 2000, No. G.S.R. 476(E) dated July 8, 2002, No. G.S.R. 854(E) dated December 31, 2002, No. G.S.R. 531(E) dated July 9, 2003, No. G.S.R. 533(E) dated July 9, 2003.

(Above footnote has been added vide Corrigendum G.S.R. 204(E)-RB, DT. 17/03/2005)

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