Financial Guarantee | Performance Guarantee | Bid Bond Guarantee

Bank Guarantee

We support your growth and serve as your surety with our bank guarantee offering. You can expand your business with ease and assurance by obtaining a domestic or foreign currency bank guarantee against collateral or a fixed deposit.

Key Benefits

We offer the following Bank Guarantees for your business needs and convenience:

Financial Guarantee
Performance Guarantee
Bid Bond Guarantee
Advance Payment Guarantee
Deferred Payment Guarantee

Here are some key points to consider before availing of a Bank Guarantee:

Cost of issuance - BG Issuance commission
Cost of the amendment and Claim processing
Other related costs, such as SWIFT and Courier charges
Collateral requirement and interest rates offered on the Fixed Deposit as collateral
Ease of documentation and faster issuance time
Acceptance of Issued BGs by Corporates and Govt. agencies

Why select RBL Bank for availing of Bank Guarantees?

Attractive interest rate on fixed deposits
Competitive pricing for the issuing and revision of bank guarantees
Trade desk manages straightforward BG documentation for all branches
Government entities and large corporations frequently accept RBL Bank Guarantees
Join overseas bidding via our correspondent bank network
Dedicated BG Desk for prompt transaction execution

Does RBL Bank provide bank guarantees? If so, what are the costs?

Yes, there are many bank guarantees offered by RBL Bank. Please contact your nearest branch or refer to the Schedule of Charges for pricing information.

How much does it cost to process bank guarantee claims?

There are no fees associated with processing bank guarantee claims.

What types of bank guarantees does RBL Bank offer?

Performance BG: When a customer breaches a non-financial contractual commitment, RBL Bank gives performance guarantees to ensure payment.
Financial BG: If a customer doesn't follow through on the terms they have agreed to, RBL Bank will provide a financial guarantee to ensure repayment of the debt.
Bid Bond BG: RBL Bank creates bid bonds to ensure that, if our client's bid is approved, they will be able to pay their obligations under the contract.
Advance Payment Guarantees: If a seller does not follow through on its promises after receiving advance payments, we guarantee that buyers' funds will be reimbursed.

Our solutions, however, can be altered to meet your needs. Please reach out to your relationship manager or stop by the neighbourhood branch. Locate your nearby branch here

Does RBL Bank issue Bank Guarantees backed by Fixed Deposits (FD)?

Yes, we do issue BG backed by FD. However, the percentage of collateral differs between domestic and foreign bank guarantees. In the context of working capital finance, RBL Bank also gives bank guarantees against collateral. Please stop by the closest branch or get in touch with your relationship manager if you want further information about the collateral percentage and procedure.

What standard documentation is needed for the granting of a bank guarantee?

The following documents must be submitted to obtain a bank guarantee:

Request Letter and Counter Indemnity cum Memorandum relating to charge over fixed deposit duly stamped (Franking as per respective State Stamp Act)
Bank Guarantee text in MS Word document
Underlying documents such as contract/agreement/invoice
Board Resolution for Private Limited/Limited Company
or
Partnership Consent letter signed by all Partners along with Partnership Deed
or
Trust Resolution along with Trust Deed for Trust
or
Managing Committee Resolution along with Bye-laws for Society