Analysis of Bank Guarantee and its Obligations amidst COVID-19 Pandemic

INTRODUCTION

In this era of globalisation and digitization, when demand for exported goods is increasing and domestic as well as international trade is flourishing and growing at a faster rate than ever before, it is crucial to have a dependable source that prevents fraud, mitigates risk, and ensures a secure business transaction. In today's commercial world, where hundreds of thousands of business transactions occur every minute internationally and parties live thousands of miles apart, an innovative institution is needed to fulfil the basic objective of a guarantee, i.e., to give security for our claims or payments. Because of this very reason, the concept of Bank Guarantee was created, which is regarded as the “life-blood” of trade, whether worldwide or domestic.