What is LC issuing Bank | Advising Bank | Negotiation Bank | Nominated Bank | Reimbursing Bank,

What is LC Issuing Bank?
UCP-600 (Article-2) The bank which opens the LC after agreeing to issue the LC at the request of the importer is called LC Issuing Bank.
What is Advising Bank?
According to UCP-600 (Article-2) Advising Bank means the bank which sends the letter of credit to the beneficiary/second Advising Bank with advice forwarding at the request of the LC Issuing Bank is called Advising Bank Bank. The relationship between the Advising Bank and the LC Issuing Bank is established in advance through an arrangement called RMA (Relation Management Agreement). This relationship is also called a correspondent relationship. Otherwise, the Advising Bank will not agree to accept the LC of the Issuing Bank. Generally, Advising Bank acts as the agent of the LC Issuing Bank. Exporters must be careful before opening LCs with new buyers without a good advising bank.
What is Negotiating Bank?
LC Issuing Bank LC Field No. F41D mentions Any Bank By Negotiation, then the bank through which the exporter provides the export documents and collects the payment is called the Negotiating Bank. Many times LC Issuing Bank LC Field No. In F41A the specified bank is mentioned then the specified bank is called Negotiating Bank and the exporter has to collect the payment by providing the export documents through the specified bank. An example is given below.
What is Nominated Bank?
In case of submission of documents by the exporter, the bank whose name the Issuing Bank mentions in the LC is called the Nominated Bank.
What is Confirming Bank?
In addition to the Issuing Bank's commitment to pay against the letter of credit, the third bank that provides additional assurance of payment to the exporter is called the Confirming Bank.
What is Reimbursing Bank?
This bank acts as the agent of the issuing bank. Empowered by the Issuing Bank by debiting their Nostro A/C, the Bank reimburses the Negotiating Bank or Claiming Bank.
What is Transferring Bank?
If the word "Transferable" is mentioned in the letter of credit, it is called Transfer LC. The bank which transfers such LC in favor of the second beneficiary at the request of the first beneficiary is called Transferring Bank.
Liabilities and Rights of LC Issuing Bank.
According to UCP-600, Article-2 - If a Complying Presentation is presented to the Issuing Bank by the Exporter through the Nominated Bank or Negotiating Bank, the LC Issuing Bank:
The sight will make immediate payment against Bill
The maturity date will be given against Deferred Bill.
Acceptance will be given if Usance Bill.
And if the Nominated Bank or Negotiating Bank has already paid an advance payment to the beneficiary against the bill, the LC Issuing Bank will reimburse the said bank. Since the LC Issuing Bank has an irrevocable promise to pay, the bank is bound to pay against a Complying Presentation. Complying with presentation refers to the presentation of documents in accordance with the applicable clauses of UCP-600 and ISBP (International Standard Banking Practice) by complying with the terms and conditions mentioned in the letter of credit.
However, if any discrepancy is observed in the submitted documents within 5 banking days, the LC Issuing Bank reserves the right to take the following measures as per Article-16
LC Issuing Bank Bank may refuse payment.
It is the discretion of the bank to inform the applicant whether the defects observed in the document are unacceptable.
If the LC Issuing Bank does not accept the documents and decides not to pay the amount, it shall (1) give an authenticated notice to the Presenting Bank that it is rejecting the documents.
(2) The notice shall specify the defects (3) that they are holding the document until they receive a reply from the presenting bank or (4) If the applicant has been informed of the defect, the document will be retained until a reply is received from the applicant regarding the acceptance of the defect or earlier. The documents shall be deposited with the Issuing Bank until instructions are received from the Bank or (5) the said Bank is returning the documents (6) or action shall be taken in light of the instructions of the Presenting Bank. The bank will decide in light of any one of these.
The LC Issuing bank must send all errors through a message to the bank presenting the first Refusal Notice within 5 banking days. Note that as per UCP, if multiple errors are reported in multiple messages, all messages after the first message will be considered invalid.
If the presenting bank takes any refund against the defective documents, the Issuing Bank can claim a refund with interest.
More about this source textSource text required for additional translation information
#LCissuingBank, #LC_issuing_Bank, #AdvisingBank, #Advising_Bank, #NegotiationBank, #Negotiation_Bank, #NominatedBank, #Nominated_Bank, #ReimbursingBank, #Reimbursing_Bank

[@syedurrahman9546]

Thank you very much for nice topics. Hope , next we get more topics like this. Thanks

[@importexporttips4808]

Sure 👍

[@md.moyeenuddin2414]

অসাধারণ স্যার

[@importexporttips4808]

thanks

[@uzzalhossain2408]

Nice tutorial.

[@importexporttips4808]

Many many thanks

[@zamannoor9990]

রিডিং পড়ে টিঊটোরিয়াল করার চেয়ে বই পড়া অনেক ভালো। একটু বিস্তারিত বলা উচিত ছিল।

[@importexporttips4808]

thanks, porar jono likediasi

[@anarulislamsohel4688]

Thank you sir

[@importexporttips4808]

Welcome

[@user-oe5zk4yp4g]

thanks

[@importexporttips4808]

thank yopu

[@hasibraihan2883]

Boi er jinis reading korle hoi naki. Sundor kore bujhite hbe. Eivabe suntei birokto lagtese

[@importexporttips4808]

thank you for your comment, Sound off then read.

[@ItzRonaldo7]

Nice

[@md.tarekulislam5703]

Ucp -600 বইটা কোথায় থেকে সংগ্রহ করতে পারবো?

[@importexporttips4808]

dhakai nilkhate khujen