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What is a Bank Guarantee for RA License?

A Bank Guarantee is a mandatory financial security deposit required by the Ministry of External Affairs (MEA) when applying for an Overseas Recruitment Agent (RA) License. It ensures that recruitment agencies operate transparently and remain accountable for candidates sent abroad.

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Purpose of bank guarantee | RA license Service

What is the purpose of bank guarantee ?

The bank guarantee serves as a security deposit to ensure the recruiting agency's accountability and to protect the welfare of emigrant workers. 

How much bank guarantee is required?

The amount depends on the scale of recruitment operations:

  1. ₹50 Lakhs – For agencies recruiting an unlimited number of candidates. (Don't panic, there is an alternative)

  2. ₹8 Lakhs – For agencies recruiting up to 100 candidates.

How much bank is required for RA license ? | Fees of recruitment license
Which bank should we opt for bank guarantee to apply for RA license ?

Who Can Issue the Bank Guarantee?

The bank guarantee must be issued by a bank approved by the MEA, which includes:

  • All Public sector Banks

  • Private sector Banks
    Note : Not any local or co corporative bank

Is There an Alternative to a Bank Guarantee?

Yes, for the unlimited (1000+) license, the MEA also offers a Insurance scheme as an alternative to the ₹50 lakh bank guarantee. This acts as a substitute for the guarantee, ensuring smaller agencies can still participate in overseas recruitment legally.

Credit Insurance for RA license | 50 L insurance for Recruitment license

Frequently asked questions

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