The India government has backed down on a move to implement a KD720 ($2450) bank guarantee for Kuwaiti employers of Indian workers.
Kuwait had threatened to ban Indian expatriates moving to the country in response to the guarantee payment, announced in September, during high level diplomatic talks with the Indian ambassador to Kuwait.
“After discussing this issue with Kuwaiti authorities, it has been agreed to suspend with effect from 12 December, 2014 taking any bank guarantees from sponsors in Kuwait, while keeping in abeyance the attestation of employment contracts of Indian female domestic workers,” a press release from the Indian embassy and quoted by local media says.
There are about 800,000 Indians in Kuwait, making them the highest non-citizen community in the Gulf state, according to government figures quoted by Kuwait Times.
About one-quarter are domestic workers.
The Indian embassy has said the bank guarantee initiated in 2007 has already has been applied in several countries, including all other Gulf states.
It emphasised that the money would be returned to the employer as soon as the employment contract ended, pending any financial disagreements.
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