Government includes Insurance Surety Bonds as Security Instrument for Govt. Procurements

Government includes Insurance Surety Bonds as Security Instrument for Govt. Procurements In her Union Budget address for 2022-23, Union Finance Minister Smt. Nirmala Sitharaman stated that the usage of surety bonds as a substitute for bank guarantees will be accepted in government procurements in order to minimise indirect costs for suppliers and work-contractors. With OM No. F.1/1/2022-PPD dated 02.02.2022, the General Financial Rules (GFRs) 2017 were updated to allow the use of surety bonds as a security instrument in government procurements. The Office Memorandum is Given Below: Amendment to General Financial Rules (GFR), 2017 to include Insurance Surety Bonds as Security Instrument. It has been decided to partially amend Rule 170(i) and Rule 171 (i) of General Financial Rules (GFR), 2017 regarding 'Bid Security and Performance Security respectively' as under: 2. This OM is also available on website of Department of Expenditure; www.doe.gov.in -> Notification -> Circular--> Procurement Policy OM. Hindi version of this OM will follow. To Read Office Memorandum Download PDF Given Below: