bank guarantee
This query is : Resolved
Hema Raviraj Ghadge
(Querist)
17 July 2010
What is a procedure for opening a bank gurantee
17 July 2010
Normally banks issue bank guarantee in favour of any 3rd parties by taking a security deposit for a similar amount from you.
Generally these steps are involved :
1. Make security deposit for a similar or more amount. Generally making FDR is preferred.
2. Apply to bank for Bank guarantee.
3. Normally a set of documents, which could vary from bank to bank, is required to be filled & signed by the authorised signatory of the company.
These forms generally contains :
a> Application for bank guarantee
b> Application for financial
assistance against security
deposit
c> Counter guarantee (to be printed /
pasted on Rs. 100/- stamp paper)
The security deposit is to submitted to bank after duly discharging it in favour of bank. Bank will issue the bank guarantee after marking lien to this security deposit.
Then the bank guarantee is to be printed on Rs. 100/- (depends on the value of the bank guarantee)- bank will return the same with appropriate signature & seal of the bank & giving the bank guarantee reference nos etc.
That's it.
Generally these steps are involved :
1. Make security deposit for a similar or more amount. Generally making FDR is preferred.
2. Apply to bank for Bank guarantee.
3. Normally a set of documents, which could vary from bank to bank, is required to be filled & signed by the authorised signatory of the company.
These forms generally contains :
a> Application for bank guarantee
b> Application for financial
assistance against security
deposit
c> Counter guarantee (to be printed /
pasted on Rs. 100/- stamp paper)
The security deposit is to submitted to bank after duly discharging it in favour of bank. Bank will issue the bank guarantee after marking lien to this security deposit.
Then the bank guarantee is to be printed on Rs. 100/- (depends on the value of the bank guarantee)- bank will return the same with appropriate signature & seal of the bank & giving the bank guarantee reference nos etc.
That's it.
17 July 2010
Well explained by Mr Subhash Jha.
Inspite of above,
Bank may issue bank gurantees against limit sanctioned to company for Bank Gurantee.
Inspite of above,
Bank may issue bank gurantees against limit sanctioned to company for Bank Gurantee.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Taxation of crypto futures in India Fy 2026- 2027
- EPF ECR NEW RULES Sep 17th 2026
- Transfer of Physical Stock Between Two Proprietorship Concerns
- MSME disclosure and disallowance
- Issuing of delivery challan by seller of goods
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
