Bank Guarantee

Dear Jayanta,

Normally,  foreign Banks give Bank  Guarantees through their branches, if any, located in India.  Further,  any BG given by a foreign Bank has to be endorsed  by a local Indian Bank  like the SBI.  If the  Purchaser stipulate a condition that the BG should be endorsed by an Indian Bank,  and that the BG will be governed by the Indian Law, the  suppliers will arrange to obtain such a BG and it is the normal practice also.

With best wishes, 

Dear Mr Jayanta,

A BG issued by a foreign bank is accetable in India provided the same is confirmed or endorsed by a bank in India immediately on its receipt. Moreover, an Indian purchaser will always insist on issuance of a BG as per the terms and conditions stated in the Bid or Contract Documents.

Find attached the proforma of a bank guarantee with instructions which would be useful and give a clear picture. 

Even a bank guarantee issued by a foreign bank, the same has to be subjected to Indian stamp duty. Suppose, such BG has not complied with the appropriate amount of satmp duty, it has to be adjudicated before the Collector of Stamps of the place where it was received. The stamp paper adjudication has to be done within 3months from the date of receipt of the BG in India.

sir Y. Parkash had posted a wonderful web link....very relevant...