Bank Guarantee Charges Reimbursement Scheme supports SC/ST entrepreneurs by giving back a large part of the money paid for Performance Bank Guarantees. It covers up to 80% of the bank charges, capped at ₹1,00,000 per financial year, for Micro and Small Enterprises working on government orders.
This is a sub-scheme of the National Scheduled Caste and Scheduled Tribe Hub, run under the Ministry of Micro, Small and Medium Enterprises. SC/ST-owned MSEs that win work from Central or State government departments and Public Sector Enterprises can claim back the charges they paid to banks for the guarantee.
Bank Guarantee Charges Reimbursement Scheme - Introduction
When an SC/ST entrepreneur gets a government work order, the buyer department often asks for a Performance Bank Guarantee before releasing the contract. Banks charge a fee for this guarantee, and that fee can add up. This scheme helps the entrepreneur recover most of that cost.
For example, if Ramesh, an SC entrepreneur, secures a government contract for office supplies, he may need to submit a PBG. Under this scheme, he can claim back a big portion of the bank charges he paid for that guarantee. The support is meant to lower the money burden on small businesses so they can take part in government tenders without worry.
Key Information
| Detail | Information |
|---|---|
| Scheme Name | Bank Guarantee Charges Reimbursement Scheme |
| Level | Central Government |
| Nodal Ministry | Ministry of Micro, Small and Medium Enterprises |
| Target Beneficiaries | SC/ST-owned Micro and Small Enterprises |
| Benefit Type | Cash reimbursement |
| Reimbursement Amount | 80% of PBG charges or ₹1,00,000, whichever is less |
| Application Mode | Online through National SC-ST Hub |
Benefits
This scheme gives real cash support to small businesses. You can claim back 80% of the Performance Bank Guarantee charges, up to a maximum of ₹1,00,000 per financial year, excluding GST and other applicable taxes.
The support is available for guarantees issued for tenders of Central and State government departments and Public Sector Enterprises. You can apply more than once in a single financial year, as long as the total claim stays within the ₹1,00,000 ceiling.
Eligibility
To get this support, you need to meet a few simple conditions. The scheme is made for SC/ST entrepreneurs who run small businesses and work on government contracts.
- You must belong to the Scheduled Caste or Scheduled Tribe category.
- You should own or represent a Micro or Small Enterprise (MSE) unit.
- Your MSE should have a banking relationship with a Scheduled Commercial Bank, a Non-Banking Finance Company (NBFC), or a State Finance Corporation.
- You must have paid Performance Bank Guarantee charges to a bank for a government contract.
Application Process
You can apply online through the official National SC-ST Hub website. Follow these steps to complete your application.
STEP 1 - Visit the official National SC-ST Hub website and click on the Sign-up button to register.
STEP 2 - Provide your details, including your full name, valid email ID, mobile number, and a secure password.
STEP 3 - After registration, log in using your credentials on the official login page.
STEP 4 - Fill in the required information and upload the necessary documents to complete your application.
Documents Required
Keep the following documents ready before you start the application. Having them handy makes the process smooth and fast.
- Self-certified copy of Udyam Registration and GST certificate.
- Self-certified copy of the SC/ST proprietor's PAN card.
- Caste certificate of the proprietor, partners, or directors.
- Shareholding documents such as Partnership Deed or Memorandum of Association to show that SC/ST entrepreneurs hold more than 51% stake.
- Bank-attested debit statement showing the PBG charges and the bank guarantee number.
- A copy of the Performance Bank Guarantee issued by your bank, duly attested by them.
- A cancelled cheque from the enterprise account used for the payment.
- Proof of any earlier reimbursement received under this scheme within the same financial year through PFMS.
- A copy of the Supply or Work Order from the government department that asked for the PBG.
References
Download Official Guidelines | Registration Portal | Login Portal
FAQ's
What is Bank Guarantee Charges Reimbursement Scheme?
It is a sub-scheme of the National Scheduled Caste and Scheduled Tribe Hub that gives back the bank charges paid by SC/ST MSEs when they provide a Performance Bank Guarantee for government work orders.
What is the amount of financial support provided?
You can get a reimbursement of 80% of the bank charges, up to a maximum of ₹1,00,000 per financial year, excluding GST and other taxes.
Can I apply for reimbursement multiple times?
Yes, you can apply more than once within a single financial year, as long as the total reimbursement does not cross the annual limit of ₹1,00,000.
Which banks are eligible for this reimbursement?
Charges paid for guarantees issued by Scheduled Commercial Banks that are accepted by the buyer department are eligible for reimbursement.
How do I apply for this scheme?
You should apply through the official National SC-ST Hub website or visit your nearest Common Service Centre (CSC) for help.