Bank guarantee for export incentives ensures unconditional bank payment to government on demand for non realisation of export proceeds. Bank guarantees required for DEPB and Chapter 3 incentive scrips constitute an unconditional and irrevocable bank undertaking to pay the Government on demand for loss arising from failure to furnish Bank Realisation Certificates or proof of export proceeds within the scrip period. The guarantee is continuing, non revocable without Government consent, remains enforceable until obligations are discharged or DGFT certifies completion, and is payable notwithstanding disputes; Government may vary terms or extend performance without discharging the bank.