Friday, July 7, 2017

What is Letter of Credit (L/C) ?



Answer:
Ø  It is a commitment of making payment by a bank on behalf of importer to the exporter upon fulfillment of certain terms & conditions.
Ø  According to the UCPDC-600 L/C means any arrangement, however,  named or described i.e., irrevocable & there by constitute a definite undertaking of the issuing bank to honour a complying presentation.

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