Bank Guarantee is an instrument issued by the Bank in which the Bank agrees to stand guarantee against the non-performance of some action/performance of a party. The quantum of guarantee is called the ‘guarantee amount’. The guarantee is issued upon receipt of a request from ‘applicant’ for some purpose/transaction in favour of a ‘Beneficiary’. The ‘issuing bank’ will pay the guarantee amount to the ‘beneficiary’ of the guarantee upon receipt of the ‘claim’ from the beneficiary. This results in ‘invocation’ of the Guarantee. IDBI Bank issues the entire range of Bank Guarantees, namely,
Bid Bond Guarantee
Advance payment Guarantee
Guaranty for warranty obligation
Payment Guarantee/Loan Guarantee
Deferred payment Guarantee
Trade Credit Guarantee
Bank issues Guarantee favoring beneficiaries abroad either directly or through our correspondent banks across the continents. Similarly, IDBI Bank also issues guarantees favoring resident beneficiaries on behalf of our overseas branches / correspondents.
IDBI Bank is now offering an online module for seeking confirmation of issuance/amendment of Bank Guarantee issued by the Bank. The beneficiaries of Guarantees can now obtain BG confirmation within a very short span of time, after putting their request on this module. Beneficiaries are no longer required to check in their mailboxes or wait for the receipt of hardcopy of BG confirmation and can simply Download the BG confirmation letter once it is ready, which is intimated by way of SMS and E-mail to the registered mobile number of the beneficiary.
Beneficiaries are not required to send any hardcopies by POST / Courier requesting for BG confirmation, and are simply required to attach the scan copy of the same in the module, thus saving both time and cost.
The process of issuance of MT760/ MT760COV will continue as usual.
For detailed process kindly click on the link: