Special Bank Guarantee for India

Special Bank Guarantee Template for India

A Special Bank Guarantee is a crucial financial instrument under Indian law where a bank provides an irrevocable undertaking to pay a specified sum to a beneficiary upon demand, subject to the terms and conditions outlined in the guarantee document. This instrument is governed by Indian contract law, particularly the Indian Contract Act, 1872, and various Reserve Bank of India (RBI) guidelines. It serves as a financial security mechanism where the bank assumes the responsibility to compensate the beneficiary in case of default or non-performance by the applicant, making it a vital tool in various commercial transactions and project executions within the Indian jurisdiction.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Special Bank Guarantee

Let Genie AI's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
Upload your Doc

What is a Special Bank Guarantee?

The Special Bank Guarantee is a fundamental financial instrument extensively used in Indian commercial transactions and projects. It is typically required when one party needs to provide financial security to another party in relation to performance obligations, bid submissions, advance payments, or other contractual commitments. The document, governed by Indian law and RBI regulations, creates a three-party relationship between the bank (guarantor), the applicant (principal debtor), and the beneficiary. Special Bank Guarantees are particularly crucial in scenarios involving substantial financial exposure, international trade, government contracts, or large-scale project implementations. They provide beneficiaries with immediate access to funds upon demand, subject to the guarantee terms, without the need for litigation or proof of default. The document includes specific details about the guarantee amount, validity period, conditions for invocation, and the precise obligations being guaranteed.

What sections should be included in a Special Bank Guarantee?

1. Parties: Details of the Bank (Guarantor), the Applicant (Principal Debtor), and the Beneficiary

2. Background: Context of the underlying transaction and purpose of the guarantee

3. Definitions: Definitions of key terms used in the guarantee document

4. Guarantee Amount: Specific amount of the guarantee and currency

5. Scope of Guarantee: Exact nature and extent of the guarantee obligation

6. Duration and Validity: Commencement date, expiry date, and claim period

7. Demand and Payment Terms: Process and conditions for making a demand under the guarantee

8. Bank's Undertaking: Specific commitments and obligations of the bank

9. Reduction and Release: Conditions for reduction of guarantee amount and release of obligations

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

What sections are optional to include in a Special Bank Guarantee?

1. Counter Guarantee: Required when there's a counter guarantee from another bank or institution

2. Assignment Clause: Include when the guarantee needs to be transferable

3. Multiple Beneficiaries: Required when there is more than one beneficiary

4. Partial Claims: Include when partial claims are permitted under the guarantee

5. Force Majeure: Include for international guarantees or when specifically requested

6. Language: Required for international guarantees specifying the prevailing language

7. SWIFT Requirements: Include when the guarantee is to be transmitted via SWIFT

What schedules should be included in a Special Bank Guarantee?

1. Schedule 1 - Form of Demand: Standard format for making a demand under the guarantee

2. Schedule 2 - Underlying Contract Details: Details of the primary contract or obligation being guaranteed

3. Schedule 3 - Security Documents: List and copies of security documents provided by the applicant

4. Appendix A - Authority Documents: Board resolutions, power of attorney, or other authority documents

5. Appendix B - Special Conditions: Any special conditions or requirements specific to this guarantee

6. Appendix C - Fee Schedule: Details of bank charges, fees, and commission applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

India

Publisher

Genie AI

Document Type

Bank Guarantee

Sector

Banking

Cost

Free to use
Relevant Industries

Banking and Financial Services

Construction and Infrastructure

Manufacturing

International Trade

Real Estate Development

Government and Public Sector

Energy and Utilities

Telecommunications

Defense Contracting

Mining and Natural Resources

Relevant Teams

Legal

Finance

Treasury

Risk Management

Compliance

Corporate Banking

Trade Finance

Project Management

Commercial Operations

Credit Administration

Relevant Roles

Chief Financial Officer

Finance Manager

Legal Counsel

Risk Manager

Treasury Manager

Contract Manager

Project Manager

Bank Relationship Manager

Credit Officer

Compliance Officer

Company Secretary

Financial Controller

Trade Finance Manager

Business Development Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Mobilisation Advance Bank Guarantee

An Indian law-governed bank guarantee securing advance payment made to contractors, ensuring repayment if the contractor defaults on their obligations.

find out more

Indemnity Bond For Bank Guarantee

An Indian law-governed indemnity document protecting banks against losses arising from their issuance of bank guarantees to beneficiaries.

find out more

Foreign Bank Guarantee

A bank-issued financial guarantee document under Indian law that provides payment assurance in international transactions upon specified conditions.

find out more

Bank Guarantee Letter For Tender

An Indian bank-issued financial guarantee document that secures a bidder's tender participation obligations under Indian banking laws and RBI guidelines.

find out more

Bank Guarantee Draft

An Indian banking instrument where a bank guarantees payment to a beneficiary on behalf of a client, subject to RBI guidelines and Indian banking laws.

find out more

Withdrawal Of Bank Guarantee Letter

A formal request letter used in Indian banking to cancel or withdraw an existing bank guarantee, governed by Indian banking laws and RBI guidelines.

find out more

Special Bank Guarantee

An Indian law-governed bank guarantee document where a bank provides an irrevocable undertaking to pay a specified sum to a beneficiary upon demand, subject to stated terms and conditions.

find out more

Letter Of Guarantee

An Indian law-governed financial instrument where a guarantor promises to fulfill specified obligations of a principal debtor to a beneficiary upon default.

find out more

Deferred Payment Guarantee

An Indian law-governed bank guarantee instrument that ensures scheduled future payments to a beneficiary if the principal debtor defaults.

find out more

Bank Guarantee Confirmation Letter

An Indian law-governed formal banking document that confirms the authenticity and validity of a bank guarantee, providing additional assurance to the beneficiary.

find out more

International Bank Guarantee

An Indian law-governed bank guarantee providing financial assurance in international transactions, regulated by RBI guidelines and the Indian Contract Act.

find out more

Business Loan Guarantee

An Indian law-governed agreement where a guarantor secures a business borrower's loan repayment obligations to a lender.

find out more

Bank Guarantee Against Fd

An Indian law-governed banking instrument where a bank guarantees payment to a beneficiary secured against a customer's fixed deposit, subject to RBI regulations.

find out more

Cheque Guarantee Letter

An Indian law-governed document providing bank guarantee for payment of a specific cheque, offering additional payment security to the beneficiary.

find out more

Stand By Lc Bank Guarantee

An Indian bank-issued financial instrument combining features of a bank guarantee and standby letter of credit, governed by Indian banking regulations and international practices, providing payment assurance upon documented default.

find out more

Government Bank Guarantee Amount

An Indian bank-issued financial guarantee document ensuring payment of a specified amount to government entities on behalf of a client, governed by Indian banking laws and RBI guidelines.

find out more

Bank Guarantee Statement

An Indian law-governed financial instrument issued by a bank, providing an irrevocable commitment to pay a specified sum to a beneficiary upon demand, subject to stated terms and conditions.

find out more

Bank Guarantee Maturity

An Indian banking document notifying parties of a bank guarantee's maturity status and required actions under Indian banking regulations.

find out more

Return Of Original Bank Guarantee

A formal request document under Indian jurisdiction for the return of an original bank guarantee upon fulfillment of contractual obligations.

find out more

Deposit And Guarantee

An Indian law-governed agreement establishing terms for deposits and associated guarantees, compliant with Indian banking regulations and contract law.

find out more

Bank Guarantee For Supply Of Goods

An Indian law-governed financial instrument where a bank guarantees a supplier's performance in goods supply contracts, providing security to the buyer.

find out more

Bank Deposit Government Guarantee

An Indian law-governed agreement establishing government guarantee terms for specified bank deposits, outlining coverage scope and invocation procedures.

find out more

Discharge Of Bank Guarantee

An Indian law-compliant document that formally releases a bank from its obligations under a previously issued bank guarantee, confirming the fulfillment of secured obligations.

find out more

Credit Line Against Bank Guarantee

An Indian law-governed agreement for extending a credit line facility secured by a bank guarantee, detailing credit terms, guarantee requirements, and enforcement provisions.

find out more

Bank Guarantee Covering Letter

A formal transmittal letter under Indian banking regulations that accompanies and introduces a bank guarantee, detailing its key terms and delivery particulars.

find out more

Guarantee Of Safe Deposit Of Money In Banks

An Indian law-governed banking document that guarantees the safety and security of customer deposits, outlining terms for protection, interest, and withdrawal rights.

find out more

Corporate Guarantee And Bank Guarantee

Template for corporate and bank guarantees under Indian law, establishing guarantee terms and enforcement mechanisms in compliance with Indian regulations.

find out more

Bank Loan Personal Guarantee

An Indian law-governed agreement where an individual guarantees repayment of a bank loan if the primary borrower defaults.

find out more

Government Guarantee Term Deposits

Terms and conditions document for government-guaranteed term deposits in India, outlining deposit terms and regulatory compliance requirements.

find out more

Bank Guarantee And Lc

Indian law-governed Bank Guarantee and LC template, providing structured framework for bank-issued financial commitments and trade finance instruments under RBI guidelines.

find out more

Guarantor Letter For Bank Loan

A legally binding document under Indian law where a guarantor undertakes to repay a borrower's bank loan in case of default.

find out more

Bank Guarantee Lost Original

An Indian jurisdiction document combining declaration of lost bank guarantee with request for duplicate issuance/cancellation and associated indemnities.

find out more

Bank Account Government Guarantee

An Indian law-governed guarantee issued by the government to a bank, securing specified bank account obligations under defined conditions.

find out more

Original Bank Guarantee

An Indian-law governed financial instrument issued by a bank, providing an irrevocable commitment to pay a specified sum to the beneficiary upon specified conditions.

find out more

Performance Guarantee In Tender

An Indian law-governed bank guarantee securing a bidder's performance obligations in a tender process, providing financial security to the tender issuing authority.

find out more

Construction Bank Guarantee

An Indian law-governed bank guarantee document that provides financial security from a bank to a project owner on behalf of a construction contractor.

find out more

Composite Bank Guarantee

An Indian law-governed bank guarantee document that combines multiple guarantee types into a single comprehensive financial security instrument.

find out more

Bank Guarantee Renewal Letter

A formal banking document used in India to extend the validity of an existing bank guarantee, complying with Indian banking regulations and contract law.

find out more

Bank Guarantee By Government

An Indian law-governed financial instrument where the government guarantees payment to a bank against default by a third party.

find out more

Bank Endorsement Guarantee

An Indian law-governed bank guarantee document where a bank guarantees the obligations of its customer to a beneficiary, subject to RBI regulations and Indian banking laws.

find out more
See more related templates

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it

2 Docs LeftAccess Now