Bank Guarantee with auto renewal clause

[Srivatsan Krishnamachari]

Dear Experts,

We need to execute Bank Guarantee on one particular issue to the AC, Central Excise dept. with auto renewal clause, Where as our bankers not accepting with Auto renewal clause.

If any body has come across this type of issue, please provide me the details (BG format with Bank details).

Thanking you,

Srinivas

AI Summary

Bank guarantee auto renewal clause: use a supplementary deed or escalate to head branch or change banks.
Banks are reluctant to execute a bank guarantee with an auto renewal clause required by the Central Excise department. Advised responses are to execute a supplementary deed of bank guarantee on stamp paper per the Excise Manual guidance, to rely on relevant case law addressing similar instruments, or to escalate the matter to the bank's head branch or change banks if a banker refuses to provide the clause.