Encashment of performance security

BRPD Circular Letter No. 32
BB has outlined the procedures for encashment of performance security (guarantees) by banks. It emphasizes the importance of due diligence before encashing performance securities and mandates banks to comply strictly with the regulatory guidelines to ensure proper and lawful encashment. The need for transparency and accountability in the handling of such guarantees to protect both banks and involved parties have been highlighted.