Bank Guarantee from foreign bank
This query is : Open
Sandeep Kumar Sahu
(Querist)
17 July 2010
We are importing some equipments from Germany. Our supplier is furnishing us Bank Gurantee from a foreign bank on the bank's letter head.
As per Indian law. A bank guarantee from Indian bank can only be accepted, if that is executed on Non-Judicial Stamp paper.
So, whether a BG executed on letter head by a foreign bank can be accepted?
Please mention any circular reference.
As per Indian law. A bank guarantee from Indian bank can only be accepted, if that is executed on Non-Judicial Stamp paper.
So, whether a BG executed on letter head by a foreign bank can be accepted?
Please mention any circular reference.
CS Richa Sharma
(Expert)
19 July 2010
Foreign Bank Guarantees sent/received through 'swift message' is (only) valid. Stamping is required for internal purposes as per the norms of the issuing country.
Only the problem will arise on invocation of the Bank Guarantee, so don't accept BG executed on letter head of the foreign bank.
Please see the views of other experts to confirm my reply.
Only the problem will arise on invocation of the Bank Guarantee, so don't accept BG executed on letter head of the foreign bank.
Please see the views of other experts to confirm my reply.
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