Bank Guarantee

• 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 persuvaded 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

• 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.
• No commission will be charged for the payorders purchased by the members to pay their children school/college fees.