Module: General Practice
Q20: As per the June 2025 relaxation concerning Advance Remittance for imports, Authorised Dealer Banks can now allow advance remittance for the import of shipping vessels up to what limit without a Bank Guarantee or Standby Letter of Credit (SBLC)?
✅ Correct Answer: C
Context: Traditionally, large advance remittances (> USD 200,000 or USD 5 Million depending on sector) required an unconditional Standby Letter of Credit (SBLC) or Bank Guarantee (BG) from the supplier to protect Indian forex.
The Relaxation: Recognizing the capital-intensive nature of the shipping industry and the difficulty in obtaining BGs for vessel purchases, the RBI permitted AD Banks to allow advance remittance up to USD 50 Million for the import of shipping vessels without the mandatory requirement of a BG or SBLC, subject to due diligence.
The Relaxation: Recognizing the capital-intensive nature of the shipping industry and the difficulty in obtaining BGs for vessel purchases, the RBI permitted AD Banks to allow advance remittance up to USD 50 Million for the import of shipping vessels without the mandatory requirement of a BG or SBLC, subject to due diligence.