The Inland and Import Irrevocable Letter of credit facilities are provided to the traders. Letter of credits are opened on behalf of our bank by its international correspondents. Normally 100% margin money is taken for issuance of letter of Credit. The letter of credit issued for lesser margin is backed by collateral security. Minimum margin taken in special case is 50%. The bills received against the LC are scrutinised as per LC terms and if found in order, the same will be paid. Other requirements and features of issuance of Letter of credit are:

• Bank to make a details assessment of nature of activity of borrower.
• Purchase order, contract copy for import of goods etc. has to be furnished
• Credit worthiness of borrower will be ascertained. The financial statement, trade licenses etc. are verified.
• Proper valuation reports are collected for collaterals.
• Commission and charges are collected upfront for while opening of LC. Separate charges are collected for amendments, extension etc. These charges and commissions are reviewed periodically.