Showing posts with label Meaning of Letter of Credit. Show all posts
Showing posts with label Meaning of Letter of Credit. Show all posts

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.