Empowering Growth Through Financial Flexibility
Surety Bonds are transforming financial guarantees for PSUs, corporates, and MSMEs alike. This page provides a comprehensive resource of key regulatory and implementation documents, demonstrating their acceptance and execution across government and corporate ecosystems.
With benefits like freeing up working capital, reducing costs and enhancing liquidity, Surety Bonds empower MSMEs to scale while offering PSUs and corporates a secure, cost-effective alternative to traditional Bank Guarantees.
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Key Regulatory Documents related to Surety Bonds
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- Manual for Procurement of Consultancy and Other Services, the GoI bible for public procurement for all ministries and departments (June, 2022)
- Department of Expenditure (DoE), Ministry of Finance, GoI OM (amendment to General Financial Rules 2017), expanding the definition of Guarantee to include Sureties. (Feb, 2022)
- IRDAI Guidelines Defining and Permitting the use of Surety Bonds (Jan 2022) and their use cases.
- Latest Surety Guidelines by IRDAI (Jun, 2024), refer Page 26 & 27 in the below attachment. These have clarifies that all commercial contracts can be covered under Sureties.
- Department of Expenditure (DoE), Ministry of Finance, GoI General Financial Rules 2017 (updated Aug 2024), with the added clauses around Bid and Performance Security via Surety Bonds
- Department of Financial Services (DFS), Ministry of Finance, GoI Implementation guidelines for government departments regarding acceptance of surety bonds (Sep, 2024)
Implementation Documents (Ministry/Department/PSE guidelines, precedences) related to Surety Bonds (not exhaustive)
To view the documents, press the toggle button (▼) next to each document description.
- Government e Marketplace (GeM) : Revised Terms of the GOI Government e Marketplace (GeM) Portal, allowing accepting Surety Bonds (May, 2024).
- Ministry of Road Transport and Highways : Mandate asking all departments to accept Surety Bonds (Including Advance Mobilisation Surety Bonds)
- Ministry of Defence: Defence Acquisition Policy 2020 with Amendments issued vide MoD ID No 1(8)/D(Acq)/21 dated 01 Apr 2024.
- Ministry of Railways : Guidelines for accepting Surety Bonds (Jan, 2025)
- IOCL Documents showcasing accepting of SBs
- State Govt of Andhra Pradesh
- State Government of NCT of Delhi
- First Surety Bond Issued by SBI General Insurance to NHAI (Nov, 2023).
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About axiTrust
Founded by a team of serial entrepreneurs and industry experts, and backed by marquee investors, axiTrust is a registered technology and consulting company that provides financial services and products via its technology platform. It is bringing Surety Bonds to MSMEs for the first time India, via its partnership with the insurance ecosystem.
So Sellers can sell more and get paid on time. So Buyers can buy more with confidence. Profitably. Easily. Without Risk.
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