Bank Guarantee and Revised DGMA Fee for RPSL Companies
- by kapil
- Updated September 16, 2026
- 16 mins read
DGMA’s new 2026 rules raise the bank guarantee requirements for RPSL companies. The old range was 10 lakh to 40 lakh. The new range is 25 lakh to 1 crore, based on seafarer numbers. New applicants pay the full new amount now. Existing RPSL holders get three years to add the difference.
Manning agencies got the same notice this month. Their old bank guarantee no longer meets DGMA’s new standard. In some brackets, it falls far short.
The Merchant Shipping (Recruitment and Placement of Seafarers) Rules, 2026 took effect on 3 September 2026. They replaced the 2016 rules. Rule 8 raises the bank guarantee for every RPSL company. Rule 7 resets the licence application steps too. Here is what changed, and what to do next.
What Are the New Bank Guarantee Rules for RPSL Companies?
The Ministry of Ports, Shipping and Waterways notified these rules on 2 September 2026. They were published as G.S.R. 777(E) in the Gazette of India. They took effect the same week, on the date of publication. They replace the 2016 rules that ran RPSL licensing for a decade.
Rule 8 sets a new bank guarantee table. It applies to every RPSL company. This includes fresh applicants and companies that already hold a licence. The new amounts are higher across every bracket. They work alongside a revised licence process under Rule 7.
This is a notified rule, not a draft. It has full legal effect now. It was made under the Merchant Shipping Act, 2025.
What Is the New RPSL Bank Guarantee Table Under the 2026 Rules?
Rule 8(3) sets six brackets. Each bracket is based on your total seafarer count, on Indian flag and foreign flag ships combined. The bank guarantee goes up with each bracket. So does the minimum office space DGMA expects.
| Sr. No. | Number of Seafarers | Bank Guarantee Amount | Minimum Office Carpet Area (sqft) |
| 1 | Up to 50 | 25 lakh | 150 |
| 2 | 51 to 250 | 40 lakh | 200 |
| 3 | 251 to 500 | 55 lakh | 400 |
| 4 | 501 to 750 | 70 lakh | 500 |
| 5 | 751 to 1000 | 85 lakh | 1000 |
| 6 | Above 1000 | 1 crore | 2000 |
A quick note on that last column. The office space rule sits in the inspection checklist, not in Rule 8 itself. It applies when you apply for a new licence, change your office address, or raise your bank guarantee. It is not a separate money requirement. But auditors check it at the same time as your bank guarantee, so plan for both together.
What Do the 2026 Rules Say About RPSL Bank Guarantees?
The Merchant Shipping (Recruitment and Placement of Seafarers) Rules, 2026 set out how bank guarantees apply to new applicants and existing licence holders, how long they must remain valid, and when they may be invoked.
Bank Guarantee Requirements for New and Existing RPSL Companies
The prescribed bank guarantee amounts apply to recruitment and placement services applying for a licence under the 2026 Rules.
Existing licensed recruitment and placement services have three years from the commencement of the Rules to submit a bank guarantee covering the difference between their existing guarantee and the applicable amount in the prescribed table.
This transition period does not apply to existing licence holders seeking to expand their recruitment capacity.
How Is the Guarantee Linked to Recruitment Capacity?
The bank guarantee must be proportionate to the number of seafarers recruited and placed by the company.
An existing RPSL company that wants to increase its recruitment capacity must submit the required additional bank guarantee along with an application in the form specified by the Director-General.
How Long Must the Bank Guarantee Remain Valid?
The bank guarantee must remain valid for the licence period or until all seafarers recruited by the RPSL service have completed their contract employment, whichever is later.
This requirement continues to apply even if the licence is suspended or withdrawn.
When Can the Bank Guarantee Be Invoked?
The Issuing Authority may invoke the bank guarantee in three circumstances:
- Repatriation and related costs: Expenses for an abandoned, stranded, detained or arrested seafarer. These may include travel, food, clothing, accommodation, medical care and other reasonable costs specified in the Rules.
- Certain legal costs: If an abandoned seafarer is detained or arrested in connection with employment, the Director-General may, at their discretion, allow the guarantee to cover legal representation and specified related expenses.
- Monetary loss: Outstanding wages or other entitlements owed to a seafarer under the seafarer’s employment agreement or applicable collective bargaining agreement, where the recruitment and placement service or shipowner fails to meet its obligations.
For a claim involving monetary loss, the seafarer must first:
- Make a complaint through the flag State’s onboard complaint procedure.
- Inform the recruitment and placement service of the details of the monetary loss at the earliest convenience.
The seafarer may then make the claim to the Issuing Authority.
What Should RPSL Companies Keep in Mind?
RPSL companies should check the guarantee amount applicable to their recruitment capacity, plan for any required top-up, and ensure that the guarantee remains valid for the required period.
The bank guarantee is separate from the licence application, renewal and inspection fees prescribed under Schedule I. Companies should account for these costs separately when planning their licensing or renewal budget.
Note: The three-year period runs from the commencement of the Rules. Include a specific calendar deadline only after verifying the commencement date from the relevant Gazette notification.
What Are the RPSL Licence and Inspection Fees Under the 2026 Rules?
Planning to start an RPSL company? Before applying for a Recruitment and Placement Service Licence, understand the fees prescribed under Schedule I of the Merchant Shipping (Recruitment and Placement of Seafarers) Rules, 2026.
The schedule sets out seven fee heads. The renewal fee has two rates, depending on when you apply—the following fee is to be paid to DMGA over and above the inspection fee that you need to pay separately to the the inspecting authority.
| Fee | Amount |
|---|---|
| Fresh licence application | ₹3,00,000 |
| Licence renewal, submitted 3 to 6 months before expiry | ₹1,00,000 |
| Licence renewal, submitted after the 3-month-before-expiry point and before expiry | ₹1,50,000 |
| Initial inspection | ₹40,000 |
| Annual inspection | ₹40,000 |
| Renewal inspection | ₹40,000 |
| Change of place of business | ₹1,00,000 |
| Change of RPSL company name | ₹1,00,000 |
Important: The licence and inspection fees are separate from the bank guarantee required under Rule 8. The Schedule also specifies that the fresh application, renewal, inspection and change-of-business-address fees are payable to DGMA in addition to the inspecting authority’s fees. The company-name change fee is listed separately at ₹1,00,000.
How Much Higher Is the New Bank Guarantee Than the 2016 Rates?
If your RPSL licence is older than September 2026, this table will look new to you. The 2016 rules asked for much smaller amounts.
| Number of Seafarers | 2016 Bank Guarantee | 2026 Bank Guarantee | Increase |
| Up to 50 | 10 lakh | 25 lakh | +150% |
| 51 to 250 | 15 lakh | 40 lakh | +167% |
| 251 to 500 | 20 lakh | 55 lakh | +175% |
| 501 to 750 | 25 lakh | 70 lakh | +180% |
| 751 to 1000 | 30 lakh | 85 lakh | +183% |
| Above 1000 | 40 lakh | 1 crore | +150% |
Every bracket rose by at least 150 percent. Take a mid-sized agency with 300 seafarers. It sits in the “251 to 500” row. It once needed 20 lakh. Now it needs 55 lakh. That is 35 lakh more, on this one slab alone.
Why Did DGMA Raise the RPSL Bank Guarantee Amount?
The bank guarantee pays for a seafarer’s trip home, medical care, or unpaid wages. That is its job when an agency or shipowner fails to pay. Ten lakh rupees, fixed in 2016, buys far less of that cover today. Flights, medical bills, and wages have all gone up since then. The old numbers had not kept pace.
There is a second problem too. Some agencies grew fast over the years. Their seafarer count went up. Their bank guarantee did not. Past enforcement records show cases where a company had hundreds of seafarers deployed, but a bank guarantee sized for far fewer. The new table ties the guarantee more closely to the size of your actual business. The office space rule does the same thing.
This move sits next to another recent DGMA step. That is the ₹1 crore P&I insurance mandate under DGMA Order 22 of 2026. Insurance covers the vessel side of seafarer risk. The bank guarantee covers the agency’s own side. Both got stricter in the same year.
How Does the Bank Guarantee Fit Into the RPSL Licence Application Process?
Rule 7 lists what you must submit before DGMA even opens your file. The bank guarantee is not an extra step at the end. It is one of four required attachments, submitted with the application itself.
Every applicant must file, in Form-I, online:
- Declarations in Form-II and Form-III.
- An agreement in Form-IV.
- Details of your single point of contact.
- A bank guarantee from a scheduled bank, matching the Rule 8(3) table above.
You cannot file a partial application and add the guarantee later. DGMA will not start work on your file until all four items are in place.
What Is the Step-by-Step Procedure for Getting an RPSL Licence Under the 2026 Rules?
Once your file is complete, Rule 7 sets a clear sequence. Each step has its own deadline.
- Submit the application. File Form-I online, with the Schedule I fee and all four documents.
- Initial check. The Issuing Authority reviews your file within fifteen days.
- Inspection referral. The file goes to an inspecting authority for a site visit.
- Inspection report. The inspecting authority visits your office. It reports back within fifteen days.
- Recommendation. If satisfied, the Issuing Authority sends its view to the Director-General within fifteen days.
- Board presentation. Your top management presents to the Maritime Labour Compliance Board.
- Board view. The Board writes down its recommendation and sends it back.
- Licence granted or refused. The Issuing Authority issues Form-V, or rejects your file with reasons.
- Login access. Once granted, DGMA gives you login credentials for your RPS online profile.
Three separate fifteen-day windows run through this process. A clean, complete file at step one saves real time later.
What Is the Purpose of the RPSL Bank Guarantee?
Rule 8(1) is clear about this. Every RPSL company must give and keep a bank guarantee. It must come from a scheduled bank in India. It must name your jurisdictional Issuing Authority as the beneficiary. Its job is twofold: make sure you meet your duties under the rules, and protect the seafarers you place.
This is not a licence fee. It is not spare cash sitting with your bank for convenience. It is a standing financial backup. DGMA can call on it if something goes wrong for a seafarer your agency placed. New to how a bank guarantee actually works, from margin to bank commission? Our guide on how to get a bank guarantee in India walks through the process with any Indian bank.
When Can DGMA Invoke an RPSL Company’s Bank Guarantee?
Rule 8(6) limits this to three grounds. DGMA cannot invoke it for any other reason.
- Repatriation costs. This covers bringing home a seafarer who is abandoned, stranded, detained, or arrested. It includes travel, food, stay, medical care, and, in the worst case, sending home a body.
- Legal costs. This covers legal help for a seafarer detained or arrested at work. It can include stay and basic needs too. The Director-General decides case by case.
- Unpaid wages. This covers wages or other dues a seafarer is owed. The agency or shipowner must have failed to pay. The seafarer must first raise it through the ship’s own complaint process. Then the seafarer must tell the RPSL company too.
Invoking the guarantee does not cancel your licence on its own. It just draws down your financial cover. DGMA may still open a separate case against you, if the underlying issue is serious. We cover that path, and the seven most common reasons for cancellation, in our guide on why RPSL licences get cancelled.
Do Existing RPSL Companies Need to Raise Their Bank Guarantee Immediately?
Not right away, in most cases. Rule 8(3) gives every existing RPSL holder three years. The clock started on 3 September 2026. That puts the deadline near 3 September 2029. In that time, you must add the extra amount your bracket now needs.
That extra amount is called the “differential.” It is the gap between your old guarantee and the new table. It is not the full new figure from scratch. Say your agency places 300 seafarers. Your old guarantee was 15 lakh. The new table asks for 40 lakh. You add 25 lakh. You do not start over.
There is one key exception. The three-year window does not apply if you are growing your recruitment numbers. If you plan to place more seafarers, you must arrange the higher guarantee as part of that capacity request under Rule 8(7). You cannot wait for the three-year deadline in that case.
The rule’s wording on this exception leaves some room for interpretation. Please confirm your exact timeline with your jurisdictional Issuing Authority. Do this before you plan around the full three years.
How Can an RPSL Company Increase Its Bank Guarantee to Expand Capacity?
Growing agencies do not wait for renewal to add capacity. Rule 8(7) to 8(13) sets out the path.
- Apply, with the extra bank guarantee attached, in the form DGMA sets.
- Wait at least six months after your first licence before you file.
- Show a clean record. No open complaints or grievances against your company.
- Where you can, time this with your annual audit. One inspection then covers both. DGMA may allow a request outside that cycle, for good reason, in writing.
- The Issuing Authority sends your file for inspection under Schedule V.
- The inspecting authority reports back within fifteen days.
- If satisfied, the Issuing Authority tells the Director-General. The Director-General then approves the increase.
Planning to double your placements over two years? Start this process early. Do not wait until the week you need the extra capacity.
How Long Does the Bank Guarantee Stay Valid, and When Can It Be Released?
Rule 8(5) makes this guarantee last a long time. It stays valid for your full licence period. Or until every seafarer you recruited finishes their contract, whichever comes later. This holds true even if your licence gets suspended or withdrawn in between. Suspension does not free up your money.
Getting it released takes a separate step, under Rule 13. First, your licence must be cancelled by surrender, or it must expire. Then you apply for release in Form-VIII. The Issuing Authority releases the guarantee in one of two ways. Either three years pass with no seafarer complaint, or every affected seafarer gets paid or sent home, whichever fits your case.
Winding down your business? Plan for that three-year tail. Your funds do not free up the day you stop recruiting.
What Fees Apply Alongside the Bank Guarantee for an RPSL Licence?
The bank guarantee is financial security, not a fee. Schedule I lists separate charges too. These go to the Director-General for the application itself.
| Particulars | Amount (Rs.) |
| Fresh licence application | 3,00,000 |
| Renewal (3 to 6 months before expiry) | 1,00,000 |
| Renewal (after that, until expiry) | 1,50,000 |
| Initial inspection | 40,000 |
| Annual inspection | 40,000 |
| Renewal inspection | 40,000 |
| Change of place of business | 1,00,000 |
| Change of company name | 1,00,000 |
Each of these comes on top of whatever your inspecting authority charges for its own visit. Budget for both, whether you are filing fresh, renewing, or moving offices.
What Should RPSL Companies Do to Stay Compliant With the New Bank Guarantee Rules?
- Check which of the six brackets fits your current and planned seafarer count.
- Work out the gap between your old guarantee and the new table.
- Ask your bank if your guarantee can be topped up, or if it needs a fresh one.
- Check your office space against the matching bracket. It gets reviewed alongside any change to your guarantee.
- Mark the 2029 deadline now. Do not wait for a DGMA reminder.
- Planning to grow next year? Start the Rule 8(7) request early. Do not wait for the three-year window.
- Keep a dated file of your bank guarantee papers. Auditors will ask for it at your next inspection.
Agencies that already use a structured RPSL annual compliance service can fold this straight into their audit calendar.
FAQs
Does the new bank guarantee amount apply to every RPSL company right away, or only new applicants?
New applicants must pay the full 2026 table amount now, with their application. Companies that already held a valid RPSL licence under the 2016 rules get three years from 3 September 2026 to add the difference. This does not apply if they are growing their recruitment numbers in that time.
How is the “differential” bank guarantee amount worked out for an existing RPSL company?
It is the gap between what you already hold and what the new Rule 8(3) table asks for your bracket. Say you hold 20 lakh under the old rules. Your bracket now needs 55 lakh. You add 35 lakh. You do not replace the whole guarantee.
Does invoking the bank guarantee mean my RPSL licence gets cancelled automatically?
No. Invoking it just draws down your financial cover. It pays for repatriation, legal costs, or unpaid wages. It does not cancel your licence by itself. DGMA can still open a separate case if the underlying issue is serious, with its own notice and hearing.
Can any Indian bank issue the bank guarantee for an RPSL application?
The rules ask for a guarantee from a scheduled bank in India. It must name your jurisdictional Issuing Authority as the beneficiary. DGMA does not limit this to a fixed list of banks. Check the exact wording and format your Issuing Authority expects before your bank issues it.
If DGMA invokes an agency’s bank guarantee, does that money go directly to the affected seafarer or their family?
Not on its own. The bank guarantee is a regulatory tool. DGMA draws on it to cover costs like repatriation or unpaid wages. It is separate from death and disability compensation. That usually comes through the seafarer’s employment agreement or the shipowner’s P&I insurance.
Is the RPSL bank guarantee the same as the bank guarantee needed for a non-seafarers licence?
No change in the bank guarantee amount for a Non-seafarers license used to place a riding squad on foreign-flag vessels.
Does the seafarer count for the bank guarantee bracket combine Indian flag and foreign flag placements, or are they counted separately?
They are combined. Rule 8(3) counts seafarers you place on foreign flag ships and Indian flag ships together. That single number decides your bracket.
Is there any alternative to a bank guarantee, such as an insurance-backed scheme, for a large RPSL company?
Not under these rules. Some other overseas recruitment licences allow an insurance option for very large agencies. The Merchant Shipping (Recruitment and Placement of Seafarers) Rules, 2026 do not offer that for RPSL companies. You need the full bank guarantee amount from your bracket.
Can a new RPSL applicant apply for a lower bracket than what it eventually plans to recruit?
Yes. You can apply based on your current plans and the matching bracket. Want to place more seafarers later? You then apply to raise your bank guarantee under Rule 8(7). That means waiting at least six months after your first licence, and showing a clean record.
What happens to the minimum office space requirement if I only need to top up my bank guarantee, without moving offices?
The office space rule still gets checked. It applies whenever you get a new licence, change address, or raise your bank guarantee. So raising your guarantee to a higher bracket can trigger a review of your office space, even without a move.
Is there a credit insurance scheme available for availing a bank guarantee?
At present, no such scheme exists for obtaining an additional bank guarantee from DGMA, unlike the credit insurance scheme option provided for the RA license under MEA.
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