An undertaking/written guarantee by the Bank to a third party (beneficiary) to secure an obligation by the customer. The Bank guarantees to pay certain sum of amount upon demand by the third party in the event of customer failed to fulfil their obligations.
Concept
Benefits
It allows customer to get undertaking/guarantee from the Bank for the benefit of customers for their performance, payment and other obligations.
Guarantees can be issued by the Bank :
- Advance Payment Guarantee
- Security Deposit Guarantee/ Supply Guarantee
- Custom Tax or Custom Duty Guarantee
- Custom bond
- Cheque Guarantee
- Guarantee for Account Ledger
- Tender Guarantee
- Performance Bond Guarantee
- Sub-Contract Guarantee
- Other types of guarantee that are not specified above may be issued subject to the approval granted by approving level
Note: Bank Guarantee issued exclude interests and penalties
