Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q18: What is the role of the bank when it issues a guarantee on behalf of a customer?

A
Indemnity Holder
B
Indemnitor
C
Assignor
D
Assignee
✅ Correct Answer: B
Indemnitor.
The bank is the indemnitor, providing the guarantee.
This role implies significant liability, often discussed in Banker Customer Relationship MCQs.