A Bank Guarantee For Tender is a fundamental requirement in most Indian tender processes, serving as a financial security instrument. It is typically required when companies participate in government, public sector, or large corporate tenders, where the tender issuing authority needs assurance about the bidder's commitment. The document is issued by a bank under Indian jurisdiction, complying with RBI guidelines and the Banking Regulation Act 1949. It includes crucial details such as the guarantee amount (usually 1-5% of the tender value), validity period, beneficiary details, and invocation conditions. If the bidder withdraws their bid during the tender validity period or fails to accept the award, the beneficiary can invoke this guarantee to claim the specified amount. This type of bank guarantee helps prevent frivolous bidding and ensures only serious participants enter the tender process.

1. Bank Details: Details of the issuing bank including branch name, address and IFSC code

2. Beneficiary Details: Complete details of the entity in whose favor the bank guarantee is being issued (typically the tender issuing authority)

3. Applicant Details: Details of the party requesting the bank guarantee (the tender participant)

4. Guarantee Amount: The specific amount for which the guarantee is being issued, in both figures and words

5. Tender Reference: Details of the tender including tender number, name, and date

6. Guarantee Terms: Core terms including validity period, claim period, and conditions for invocation

7. Bank's Undertaking: The specific commitment by the bank to pay the guaranteed amount upon valid invocation

8. Invocation Procedure: Process and conditions under which the guarantee can be invoked by the beneficiary

9. Expiry Provisions: Conditions regarding the expiry of the guarantee and return of the original instrument

10. Jurisdiction: Governing law and jurisdiction for dispute resolution