A confirmed letter of credit is one where the exporter's bank asks for additional guarantee from another bank of its choice that if the buyer's bank is unable to honour it's obligations then the confirming bank will make the payment on the behalf of the buyer's bank. Here, the confirming bank may be in the same country as the exporter or a well reputed international bank.
A restricted letter of credit is one in which the negotiation can only be done by the bank which is chosen by the bank issuing the LC. Authorization from the issuing bank to pay the beneficiary is restricted to a specific nominated bank. Meaning is that negotiating bank is only the bank which is nominated and no other bank is authorized to do the valuation of the LC other than the nominated bank. Thus, whereas the confirmed LC is one which requires authentication of payment of negotiated value(value arrived at by the negotiating bank) by the confirming bank( the respective trade documents along with the LC will pass from negotiating bank to confirming bank so that it can take note of the quantum of guarantee), the restricted LC only requires the valuation to be done by a specifically nominated negotiating bank. Here, in case of restricted LC, there is no guarantee involved from another bank as such to the exporter's bank that payment will be made. That guarantee can be there only when the LC is confirmed.
Also, restricted LC is mainly focused on valuation of the LC, whereas confirmed LC is focused on additional payment guarantee from a bank of repute.
I guess that should be the difference
what is the difference between transferrable and non transferable LC?
The difference between an RC and LC is that the frequency - determining device in the RC oscillator is not a tank circuit. LC can operate with A or C biasing, while RC can only operate with A.
One difference between an SC and an LC connector is that an LC connecter is smaller in size than an SC connector. Also, an LC connector is considered a latch connector, whereas an SC connector is considered to be a push-pull connector.
An import LC is one made with reference to the buyer but with an export LC, the LC is changed to that with reference to the Issuing bank. This gives a stronger guarantee of payment to the seller.
An outward LC is opened on behalf of a customer who wishes to import or buy goods. An Inward LC is opened by a foreign bank in favor of the exporter.
From merchandising point of view what features of master L/C
no
LC means coil capacitance circuit RC means resistance capacitance circuit
No difference as both are alternate names of each other
The difference between double side band long carrier (DSB LC) and double side band short carrier (DSB SC) is the is how the amplitude modulation (AM) is referenced in the carrier wave.
difference between local oscillator and controlled oscillator
Can the issuing bank be held responsible for the dlc if their client default