The Original Bank Guarantee is a crucial financial instrument in Indian business transactions, commonly used to secure contractual obligations, tender participations, and performance commitments. It serves as a three-party contract where a bank provides a written undertaking to pay a specified amount to a beneficiary if the applicant fails to fulfill certain obligations. Under Indian jurisdiction, these guarantees are governed by the Indian Contract Act, 1872, Banking Regulation Act, 1949, and specific RBI guidelines. The document typically includes details of all parties, the guaranteed amount, validity period, purpose, and conditions for invocation. Bank Guarantees are particularly vital in scenarios requiring financial security, such as government tenders, construction projects, or international trade transactions, where they provide risk mitigation and business confidence to the contracting parties.

1. Bank Details and Reference Number: Unique reference number of the guarantee and complete details of the issuing bank branch

2. Date and Place of Issue: Date and location where the bank guarantee is issued

3. Beneficiary Details: Complete name and address of the party in whose favor the guarantee is being issued

4. Applicant Details: Complete name and address of the party on whose behalf the guarantee is being issued

5. Recitals: Background of the underlying transaction and reason for issuing the guarantee

6. Guaranteed Amount: The maximum amount guaranteed, both in figures and words

7. Purpose of Guarantee: Specific purpose for which the guarantee is being issued

8. Validity Period: Start date and end date of the guarantee, including claim period if any

9. Terms of Invocation: Conditions under which the guarantee can be invoked and process for making a claim

10. Bank's Undertaking: The core guarantee statement and bank's commitment to pay

11. Governing Law and Jurisdiction: Applicable law and courts having jurisdiction

12. Claim Period: Period within which claims can be made after expiry of the guarantee

13. Authentication: Authorized signatures, stamp, and witness details