So, can exporters expect the same help from the
advising bank? You might think the answer would be yes, and many companies expect assistance from the
advising bank.
Red-clause L/Cs enable an exporter to obtain pre-shipment finance, which is a percentage of the L/C amount, from the
advising bank. This occurs either by a simple written statement of purpose, a 'clean red clause', or by the exporter's providing specified documents.
Once the LC is reviewed and approved by the
advising bank, it's sent to the seller, who can present the documents back to a negotiating bank, with whom the seller ideally has a relationship.
Ms Betts specialises in finance law,
advising banks and asset-based lenders on a wide range of transactions.
When the L/C has not been confirmed, there may be a clause restricting the handling of documents to the
advising bank. Often however, there is no such restriction, and beneficiaries may choose to ask their own bank to handle the documents.
An
advising bank may elect to undertake a variety of additional functions, which will be discussed in a later commentary.
ISLAMABAD -- State Bank of Pakistan has issued a circular on Friday,
advising banks that they may accept proof of registration (PoR) Card issued by National Database and Registration Authority (NADRA) as identity document for opening accounts of Afghan refugees.
ISLAMABAD: State Bank of Pakistan has issued a circular on Friday,
advising banks that they may accept proof of registration (PoR) Card issued by National Database and Registration Authority (NADRA) as identity document for opening accounts of Afghan refugees.
The SME policy, issued by SBP in December 2017, ensured provision of enabling regulatory environment for SME finance, prescribing SME financing targets for banks/DFIs, sensitizing banks to adopt SME financing as a viable business proposition,
advising banks to provide non-financial advisory services for making SMEs bankable, simplifying procedures for SME financing and introduction of new SBP refinance schemes for SMEs through banks/DFIs.
The launch of the solution that uses social identity provided by the Indian government, comes at a time when the Indian central bank recently issued a circular
advising banks to use biometric authentications for digital transactions.
