Logistics terms · Logistics terms

What does Performance bank guarantee (PBG) mean in logistics?

Short answer

A bank guarantee that a contractor gives the buyer after award, which the buyer can encash if the contractor fails to perform.

Standard in Indian government, PSU and many corporate logistics contracts. The percentage and validity are set in the tender under the General Financial Rules, 2017 or the buyer’s own policy. Ask our desk how this applies to your consignment.

Period: General definition. Data as of 29 Sep 2026. How we count

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The numbers behind this answer

Also called
PBG, performance security
Category
Contracts & pricing
Related terms
Earnest money deposit (EMD), Work order, Government e-Marketplace (GeM), Central Public Procurement Portal (CPPP)

Sources

  1. SSL logistics glossary

Period: General definition. Data as of 29 Sep 2026.

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