Not Withstanding clause in Bank Guarantee

[Venkateswaran Sundaram]

Hi All

 

Nowdays bank have advised not to issue BGs without NWC.

Eventhough the contents of the NWC is mentioined at various places in the body of the BG like amount, Expiry, deadline for claim,  the NWC is mandatory.

 

But some Railway offices insist on BG without NWC.  The other solution they offer is give us a FDR as security deposit.

 

Any of you have come across this problem and how do you handle.

 

Venkat

[Ravichandran subramanian]

Dear Venkat,

 

The format of the bank is  approved by their HQ and it is difficult to change this.  The Notwithstanding clause only reiterates that the  capping of  the amount , the validity period.  In my view, there is no new clause and do not know why the Railways make an issue out of this?  Indian  Bureaucracy !!!

 

regards

 

S.Ravichandran

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