types of bank gaurantee

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Sumit Dhiman

Sumit Dhiman (Querist)
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20 June 2016 what is the difference between financial and performance gaurantee

Amol S Joglekar

Amol S Joglekar (Expert)
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20 June 2016 financial guarantees are BANNED by RBI since long
Performance guarantee.....the gurntee given by the bank for its client towards completion of a work...performance of work....e.g. guarantee of 25 lakh....that the contractor will complete the road building work....if not guarantee will be invoked and bank will pay the amount

Sumit Dhiman

Sumit Dhiman (Querist)
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21 June 2016 thank you sir

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Amol S Joglekar

Amol S Joglekar (Expert)
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21 June 2016 you are most welcome

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