Checklist for banks financing against LC/ Co-accepted bills
Letter of credit (LC) is an undertaking from a bank on behalf of its customer (importer/buyer) wherein the beneficiary (exporter) is fully assured of payment provided he fulfills his part of the sale contract embodied in Letter of Credit. Similarly, Co-acceptance of bills means “an undertaking from the third party (generally a Bank) to make payment…
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What are the Clean Bills, Documentary Bills, Demand Bills, Usance Bills and Accommodation Bills?
The word ‘bills’ is the acronym to ‘bills of exchange’. There are different kinds of bills of exchange viz. Clean Bills, Documentary bill, Demand bills, Usance Bills, Accommodation Bills etc. Clean Bill: When the document of title to goods (like LR/RR/BL/Airway bill etc.) is not accompanied by a bill of exchange, it is called as a clean…
Read article What is the meaning of inland bills and foreign bills?
Meaning of Inland Bills; A bill of exchange which is drawn or made in a country and paid in the jurisdiction of the same country is called inland bill. The section 11 of Negotiable Instrument Act 1881 provides that the bills of exchange (including cheques/promissory notes) drawn or made in India and made payable in or…
Read article What is the meaning of DP bills, DA bills, and Acceptance of bills?
A buyer of goods requires original shipping documents to take delivery of goods shipped to him by the seller. The seller (exporter) after shipment of goods prepares necessary set of documents related to goods like Bill of lading/Airway bills, LR, RR, dock warrant, dock receipt, warehouse receipt, etc. along with the invoice of the goods…
Read articleUrjit Patel appointed as new RBI Governer
The Government of India today (20/8/2016) announced Urjit Patel as the the new RBI Governor. The 52 years old Mr.Patel is the current Deputy Governor of RBI in charge of monetary policy. Mr. Patel has worked with Boston Consulting Group and Reliance Industries in the past and he is associated with RBI since 2013. He…
First move to consolidate PSBs: Union cabinet approved merger of 5 associate banks and Mahila Bank with SBI
In a first move to consolidate the public sector banks, Union Cabinet approved on Wednesday, the merger of five of SBI’s associate banks viz. State Bank of Travancore (SBT), State Bank of Mysore (SBM), State Bank of Bikaner & Jaipur (SBBJ), State Bank of Patiala (SBP), State Bank of Hyderabad (SBH) and Mahila Bank with…
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