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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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:
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₹50 Lakhs – For agencies recruiting an unlimited number of candidates. (Don't panic, there is an alternative)
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₹8 Lakhs – For agencies recruiting up to 100 candidates.


Who Can Issue the Bank Guarantee?
The bank guarantee must be issued by a bank approved by the MEA, which includes:
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All Public sector Banks
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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.
