I Am 59 Years Old And Is Banker By Profession Having Vast Experience In The Field Of International Banking I.E. Trade Finance Import Export. I Am Interested To Face New Challenges In My Life.
I Worked In MCB Bank For About 27 Years In The Field Of Import – Export And Foreign Remittance Outward And Inward.
When Any Business Man Wants To Import From any Country Then An Irrevocable Letter Of Credit Is The Best Way To Import From Any Country.
A Letter Of Credit Is An Undertaking Between Two Banks On Behalf Of Importer And Exporter. The importer and exporter have no any trust between each other therefore a letter of credit comes into existence.
The importers bank is called opening bank and the exporters bank is called negotiating bank. There is another bank exists which is called advising bank.
When the LC receiving bank is other than negotiating bank then it is called an advising bank who only advised the LC to the beneficiary.
If the LC called for negotiation by any other bank then beneficiary is free to negotiate the LC from any other bank.
In some cases if the LC is called for confirmation of LC then the confirming bank and reimbursing bank will be the same.