4.15.1
- Document type
- Procedure
- Dated
Back to Back Inland Letter of Credit (L/C)
Back to Back Inland Letter of Credit (L/C)
4.15.1
Before opening the L/C, bank will ensure that necessary BG / LUT has been executed by Advance Authorisation / Non Transferable DFIA holder and an endorsement to that effect has been made on the Authorisation.
However, execution of BG / LUT shall not be required against transferable DFIA. After opening inland L/C, bank shall make following endorsement on Exchange Control and Customs copy of Advance Authorisation / DFIA:
Value of this Advance Authorisation / DFIA stands reduced by a sum of Rs. __________ , being value of inland L/C No.________ opened today by authorisation holder in favour of M/s ______________________ (name and address of indigenous supplier).
4.15.1
Before opening the L/C, bank will ensure that necessary BG / LUT has been executed by Advance Authorisation / Non Transferable DFIA holder and an endorsement to that effect has been made on the Authorisation.
However, execution of BG / LUT shall not be required against transferable DFIA. After opening inland L/C, bank shall make following endorsement on Exchange Control and Customs copy of Advance Authorisation / DFIA:
Value of this Advance Authorisation / DFIA stands reduced by a sum of Rs. __________ , being value of inland L/C No.________ opened today by authorisation holder in favour of M/s ______________________ (name and address of indigenous supplier).