Finance
Sock JohnsonRBI Drops the Hammer on Credit Guarantees for NRIs!
Listen up, folks! The Reserve Bank of India just threw down the law! No more resident Indians throwing credit guarantees to NRIs, or you’ll feel the heat! But if you’ve got a bank behind you, you might just score a win. Keep it legal under foreign exchange law, or The Rock's not playing around!
few days ago | Anjali Kumari
Quick rundown
1.RBI prohibits credit guarantees for NRIs by resident Indians.
2.Resident Indians can be surety only if transactions are legally permitted.
3.Authorized dealer banks have specific exceptions under new rules.
4.Quarterly reporting to banks is mandatory for guarantee transactions.
5.Late reporting incurs fees based on delay and amount involved.
