Policy Circular
No. 24 (RE-2000)/1997-2002 dated the 6th Sep., 2000
Subject :
Return of Bank Guarantee by Licensing Authorities
In the Open House discussion with EXIM Club, Baroda held on 10th December, 1999, it was requested that in respect of the Bank Guarantees taken by Licensing Authorities, wherever the export obligation has been completed and cases are redeemed, Bank Guarantee should be returned to the party because in the absence of these Bank Guarantees the banking authorities are not releasing Bank Guarantees. At present Licensing authorities are issuing the redemption letter and copy of this is endorsed to the concerned bank for release of BG.
2. The request has been considered in consultation with Reserve Bank of India and it has been decided that original bank guarantee should be returned to the Bank concerned on redemption of case under intimation to the licensee.
3. This issues with the approval of Director General of Foreign Trade.
Sd/-
(L.B. Singhal)
Joint Director General of Foreign Trade