Bank Guarantee - How much % FD need to be putted?

[Danish Azfar]

Hi Experts,

Can you please let me know the procedure for getting the bank guarantee from the bank? For example, how can a bank guarantee be availed through FD? or any other way also?

If FD, then how much % of the FD for the Bank Guarantee?

Are all banks following the same procedure and % of FD, or does it vary from bank to bank?

Please clarify.

AI Summary

Bank guarantee security through fixed deposit requires bank appraisal and lien over deposit; margins and charges vary by bank.
A bank guarantee is issued after formal application, KYC submission and the bank's internal appraisal determining eligibility and security. When secured by a Fixed Deposit the bank ordinarily places a lien on the FD for an amount at or above the guarantee and requires the FD tenure to be co terminous with or longer than the guarantee. Margin levels, charges and procedures are governed by each bank's internal credit policy and may vary between banks.