slide

What are surety bonds? MintGenie explains

Surety bonds are guarantees of payment issued by insurers and do not require a huge amount of cash margin as a guarantee like bank guarantees.

In the Union Budget 2022-23, Finance Minister Nirmala Sitharaman rolled out a plan to use surety bonds as a substitute for bank guarantees.


The Centre pushed for this idea to increase liquidity in the infrastructure sector during the pandemic.


The Ministry for Road Transport & Highways urged the insurance regulator Insurance Regulatory and Development Authority (IRDAI) to develop a model product on ‘Surety Bonds’.


Surety bonds help in freeing up capital that gets stuck due to bank guarantees and make the process of executing road projects rapid.


The premium charged for insurance bond is likely to be lower, making the product far more affordable in comparison to bank guarantees.


Bajaj Allianz is launched the first surety bond on December 19.


Click here to know more about surety bonds.

Check here for more personal finance stories.


The Union Finance Minister paved way for the use of surety bonds as replacement for bank guarantee during the Budget 2022. We share more details on the new set of bonds in this piece.

Bharat Bill Payments: All you need to know

Top 5 insurance products to avail tax benefits and security

Systematic Withdrawal Plans: Here's how you can make the most of it

How to manage emergency fund effectively?

Income Tax: These 3 sections of insurance should be prioritised while tax planning

What exactly is Union Budget? MintGenie explains

First-time investor: Here are some mutual funds you must have in your portfolio

5 investing lessons from Motilal Oswal’s Manish Sonthalia to earn from the market

Insurance portability: From benefits to requirements; All you need to know

Maruti Suzuki expects production loss in Q1; anticipates some relief from July

<ul><li>The country's largest carmaker has been facing a shortage of chips for a while which has impacted its supplies to cater to the market demand.</li></ul>

Mcap of 7 of top-10 most valued firms jumps ₹1.51 lakh crore; Reliance, TCS biggest gainers

<ul><li>While Reliance Industries, Tata Consultancy Services (TCS), Hindustan Unilever, ITC, Infosys, State Bank of India and Bharti Airtel made gains in their market valuation, HDFC Bank, ICICI Bank and HDFC faced erosion.</li></ul>

FPIs invest ₹37,316 crore in May on strong domestic macro fundamentals, reasonable valuation

<ul><li>This is the highest investment by FPIs in the last six months. Before this, they made a net investment of ₹36,239 crore in equities in November 2022, data available with the depositories showed.</li></ul>

Global trends, macroeconomic data to drive equity markets this week: Analysts

Stocks

<ul><li>On the global front, the US debt ceiling issue holds significant importance, alongside US macroeconomic indicators, movement of the US bond yields, the dollar index and crude oil prices, said Santosh Meena, Head of Research, Swastika Investmart Ltd.</li></ul>

7 features you must have in your health insurance policy

Before choosing your health insurance policy, it is important to consider factors such as room rent limits, pre and post hospitalisation cover, sub-limits, waiting periods, network of hospitals, claim settlement process, day care facility, and the co-payment feature.

What are surety bonds? MintGenie explains

Topics to follow

Latest News

markets

markets

markets

markets

personal finance