Letter of Credit

• Bank Guarantee and Letter Of Credit Limits sanctioned to Members of the Bank.
• BG/LC Limits sanctioned to customers of the Bank on the security of the deposits/Immovable properties.
• The Bank can extend only financial guarantees, but not performance guarantees.
• The tenure of the Bank guarantee shall be for maximum period of 3 years.
• The BG/LC facility extended to businessman, professionals, industrialists, small business entrepreneurs for the purposes of payment of EMD, procurement of work orders, procuring advances for executing work orders, getting payment of bills, and such other purposes.
• The cash margin as may be prescribed from time to time based on additional/collateral securities.
• The incidental expenses in connection with issue of Bank guarantee shall be borne by the applicant. Bank guarantee commission/fees as prescribed from time to time.