Prashant
07 August 2009 at 14:50
A Pvt Ltd is newly formed company & is subsidiary of B Ltd. A Pvt Ltd is in the process of applying for tender & is required to furnish Bank Gurantee. Since it is newly formed company, its holding co. B Ltd kept FD worth Rs 50 lakh with bank & provided BG on behalfo A Pvt Ltd. BG required was Rs 50 lak so holding co kept 100% margin money in terms of FD & bank put its lien on FD.
Now bank wants counter indemnity for guarantee limit.
So whether bank is right in asking such counter indemnity once 100% margin is kept. What is the available defence against bank for forcing counter indemnity.
Under what circumstances the counter indemnity is asked by bank. Are their any RBI guidelines for such counter indemnity.
Pls advice & guide
Thanks in advance
Banking
A Pvt Ltd is newly formed company & is subsidiary of B Ltd. A Pvt Ltd is in the process of applying for tender & is required to furnish Bank Gurantee. Since it is newly formed company, its holding co. B Ltd kept FD worth Rs 50 lakh with bank & provided BG on behalfo A Pvt Ltd. BG required was Rs 50 lak so holding co kept 100% margin money in terms of FD & bank put its lien on FD.
Now bank wants counter indemnity for guarantee limit.
So whether bank is right in asking such counter indemnity once 100% margin is kept. What is the available defence against bank for forcing counter indemnity.
Under what circumstances the counter indemnity is asked by bank. Are their any RBI guidelines for such counter indemnity.
Pls advice & guide
Thanks in advance