Mumbai, Sept 19: Further liberalising and simplifying the procedure for import of goods, Reserve Bank of India on Thursday said authorised dealers (ADs) may allow advance remittance in excess of $1,00,000 on obtaining a guarantee against the counter guarantee of an international bank of repute outside India. Earlier on June 19, RBI had permitted ADs to make advance remittance up to $1,00,000 or its equivalent without bank Guarantee for import of goods into India.

In cases where the importer, except public sector unit and government department, was unable to obtain bank guarantee from overseas suppliers and the AD was satisfied about their track record and bonafides, banks may not insist upon the bank guarantee or standby Letter of Credit for advance remittances up to $10,00,000, RBI said in a notification.
ADs may frame their own internal guidelines to deal with such cases and the decision to waive requirement of bank guarantee should be taken by the bank's board of directors, it added.
RBI said for public sector company or a government department or undertakings, the requirement of bank guarantee has been specifically waived by the Ministry of Finance for advance remittances exceeding $1,00,000. Bureau Report