Notification No.FEMA.151/2007-RB

dated  January 4,  2007

Foreign Exchange Management (Guarantees) Regulations, 2000 – Amendment of Regulation

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 makes the following amendments to the Foreign Exchange Management (Guarantees) Regulations, 2000 (Notification No.FEMA 8/2000-RB dated May 3,2000), namely :

1. Short title and commencement :-

(i) These regulations may be called the Foreign Exchange Management (Guarantees) (Amendment) Regulations, 2007.

(ii) They shall come into force from November 17, 2006.@

2. Amendment of the Regulations :-

In the Foreign Exchange Management (Guarantees) Regulations, 2000 (Notification No.FEMA 8/2000-RB dated May 3, 2000), in regulation 4, in sub-regulation (3), after clause (iii), the following new clause shall be inserted, namely :-
“(iv) in favour of an non-resident service  provider, on behalf of a resident customer who is a service importer, for an amount upto USD 100,000 or its equivalent.”

Salim Gangadharan
Chief General Manager-in-Charge

Foot Note : (i) @ Certified that no person would be adversely affected as a result of retrospective effect given to the notification.

(ii) The Principal Regulations were published in the Official Gazette vide No. G.S.R. 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 August 19, 2002, No. G.S.R. 745(E) dated November 16, 2004 and No.G.S.R. 61(E) dated February 9, 2005.