A bank guarantee has been issued by the bank in lieu of the customer being required to deposit cash security. Such a guarantee is called

Financial guarantee is the type of bank guarantee which is issued by a bank and furnished by a bank’s customer in lieu of earnest money or the security to be deposited with the beneficiary of the bank guarantee for the performance of a contract. These guarantees are given in lieu of purely monetary obligation (the obligation of contractor to make earnest money deposit/guarantees to give to sale-tax department etc).