Role Of Bank Guarantee In The Infrastructure Sector

Suvijit, Shobhit Institute of Engineering and Technology, A Deemed to be University, Meerut (U.P.)

Pallavi Jain, Assistant Professor, Shobhit Institute of Engineering and Technology, A Deemed to be University, Meerut (U.P.)

ABSTRACT

The banking practices in India have evolved from centuries, since the barter exchange to the emergence of the rupee in the economy. Banks have played a huge role in strengthening the Indian Economy. Earlier Banks main function was only limited to accepting deposits and lending money. The Banking methods have evolved, This article shall briefly outline the basic concept of bank guarantee under the banking laws Any business that seeks to grow and become a profitable venture and the relation between tow business houses and their intermediary such as banks and other financial institutions. There is need of a good relationship with a bank and to achieve it. For more understanding the word Bank Guarantee will be used as BG for convenience of the readers.

Keywords: Banks, Trustee, Bank Guarantee, Construction Contracts, Judgments