Para 6.1.6 — GOODS_MANUAL

a) BG shall be as per the prescribed formats. b) The BG contains the name, designation and code number of the Bank officer

(s) signing the guarantee(s); c) The address and other details (including telephone no.) of the controlling officer of the bank are obtained from the branch of the bank issuing the BG (this should be included in all BGs); d) The confirmation from the issuing branch of the bank is obtained in writing through registered post/ speed post/ courier/ SFMS on the official portal of the procuring entity. The bank should be advised to confirm the issuance of the BGs specifically quoting the letter of Procuring Entity on the printed official letterhead of the bank indicating the address and other details (including telephone nos.) of the bank and the name, designation and code number of the officer

(s) confirming the issuance of the BG; e) Pending receipt of confirmation as above, confirmation can also be obtained with the help of the responsible officer at the field office, which is close to the issuing branch of the bank, who should personally obtain the confirmation from the issuing branch of the bank and forward the confirmation report to the concerned procuring entity.

2. Bank guarantees, either received in physical form or electronic form, should be verified for their genuineness following the prescribed method for the same, and the Organisations should do due diligence on the genuineness of the Bank Guarantees before acceptance of the same.

3. Corporate Guarantee or Indemnity Bond shall not be accepted for Bid Security (EMD) or performance Security or in lieu of any other Bank Guarantee (e.g., for advance payment/ warranty obligations).

4. Please note the ease with which an e-BG can be verified, as shown in para 6.1.4-5 above. 6.1.7 Safe Custody and Monitoring of EMDs, Performance Securities and Other Instruments

A suitable mechanism for safe custody and monitoring of EMDs, performance securities, and other instruments should be developed and implemented by each Procuring Entity. The Ministries/ Departments shall also make institutional arrangements for taking all necessary actions on time for extension or forfeiture/ encashment or refund of EMDs and performance securities, as the case may be. Monitoring should also include a monthly review of all bank guarantees and other instruments expiring in the next three months, along with a review of the progress of the corresponding contracts. Extension of bank guarantees and other instruments, where warranted, should be sought immediately and implemented within their validity period. Bank Guarantee should never be handed over to the supplier for propose of extension of

6.1.6 Verification of Bank Guarantees 1. Bank guarantees submitted by the bidders/suppliers as EMD/performance securities need to be immediately verified from the issuing bank before acceptance. There may not be any need to get the Bank Guarantee vetted by legal/ finance authority if it is in the specified format. Guidelines for verification of BGs submitted by the bidders/ contractors against EMD/ performance security/advance payments and for various other purposes are as follows:

Chapter 6: Forms of Securities, Prices, Payment Terms and Price Variations validity. Such a system of monitoring of securities and other instruments may be computerised with automatic alerts about lapse of validity, etc.