ISSUE OF BANK GUARANTEE ON BEHALF OF SERVICE IMPORTERS

Banks are now permitted to issue guarantee for amount not exceeding USD 500,000 or its equivalent
in favour of a non-resident service provider, on behalf of a resident customer who is a service importer, subject to following conditions

• Satisfied about the bona fides of the transaction
• Ensure submission of documentary evidence for import of services
• Guarantee to secure direct contractual liability arising out of a contract between a resident & a non-resident.