Q: What is cancellation of bank guarantee and how is it performed ?

Ans:  After the expiry of bank guarantee,  the same is to be returned for cancellation. Otherwise the bank will send a registered notice to the beneficiary of the guarantee with direction to return the bank guarantee immediately. If the beneficiary does not give any reply to the said notice or the original guarantee is not surrendered for cancellation,  the bank can cancel the bank guarantee after waiting for a reasonable time.

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