Bank guarantee

Nasim (Querist) 06 November 2017 This query is : Resolved
An existing borrower who avail cash credit facility . He request bank to issue bank guarantee to a tractor company. Later Bank issued bank guarantee to the tractor company. Now can Bank withdrawal Bank Gaurantee within claim period?

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Ms.Usha Kapoor (Expert) 06 November 2017
Bank canot withdraw bank guarantee before expiry of claim period.Click the following link for furthe information on this issue.
https://www.bankingschool.co.in/loans-and-advances/all-about-time-limit-for-enforcement-of-bank-guarantees/

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Rajendra K Goyal (Expert) 06 November 2017
Bank can not withdraw issued Bank Guarantee before time till all parties to the guarantee agree to it.

Dr J C Vashista (Expert) 07 November 2017
Well advised by experts I agree.

Nasim (Querist) 07 November 2017
If borrower wants to withdraw BG, then what will be procedure to withdraw BG from tractor company.

Rajendra K Goyal (Expert) 07 November 2017
As stated above, consent of beneficiary of the BG is essential.

Nasim (Querist) 07 November 2017
Thank you Sir

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