#1
24th October 2017, 10:56 AM
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IDBI Letter Of Credit
Hii sir, I Wants to get the Information About the Letter of Credit of the IDBI bank will you Please provide It ?
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#2
24th October 2017, 12:08 PM
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Re: IDBI Letter Of Credit Letter of Credit of the IDBI bank Documentary Credits, more commonly known as letters of credit are a widely used method to effect payments in domestic and international trade. A written undertaking is issued by a bank (usually referred to as the issuing bank) on the instructions of the buyer of goods to the seller Uses of the Letter : The use of documentary credits provides enough safeguards for the parties involved. The seller is ensured payment, provided he complies with terms he agreed to while the buyer can include all terms and conditions within the documentary credits that satisfy him on the quality and quantity of the goods without having to sight / inspect the goods themselves . Since banks act as trustworthy third parties/ intermediaries, the issues relating to trust between the buyer and the seller are taken care of. Documentary Credits can be either sight or usance depending on whether credit period is extended to the buyer by the seller. Advantage : Domestic LCs as well as Foreign LCs transmitted over secure network using SFMS and SWIFT platforms to prevent frauds. Bullet Advisory on structuring of complex LCs, especially those related project imports, Commodity imports, Merchant Trade etc. Bullet High standards of document checking. Bullet Quick TAT Bullet Soft copy of LCs through e-mail/fax etc. Short term trade credit as per regulatory guidelines. |