- Only financial guarantee should be issued for period not exceeding 10 years.
- Guarantee should not be allowed to the customers who do not enjoy credit facility bearing small amount guarantees. The small amount guarantee will be on 100% Cash Margin.
- The guarantee shall be secured on 50% cash margin and 50% movable / immovable security.
- The guarantee shall have restricted liability clause and guarantee draft letter shall be approved by legal advisor of the bank.
- The commission shall be levied as approved by the bank from time to time.
- Branches shall keep a separate Guarantee Issued Register.
- Once the guarantee period expires, a notice / letter shall be issued to the beneficiary requesting him to return the original guarantee and customer may be persuaded to get back the original guarantee.
- No guarantee shall be issued without the sanction of Board of the Bank.
- If any claim arises, it should be referred to H.O. and only after obtaining permission the guarantee claim amount should be settled.
- The applicant should be asked to clear the claim amount without loss time. If not cleared, the usual steps for recovery of loan should be initiated.
- While settling the claim, the amount should be debited to separate Guarantee Claims Settled Register and shall carry interest at clean rate till the loan is cleared.
- Solvency Certificate shall be issued only to the Bank customer.
- Amount of solvency for an individual shall not exceed his/her business asset plus outside-worth Minus Liabilities if any.
- Solvency Certificate shall be issued with prior sanction of the Board.
- The prescribed commission shall be collected.
- The Solvency Certificate shall be issued to specific beneficiary and in the prescribed format.
Pay order Facility
- Bank issues payorder at lesser commission charges.