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Yes, an issuing bank can be a nominated bank, but this typically depends on the specific terms of the letter of credit or trade agreement in question. In such cases, the issuing bank may authorize another bank to act on its behalf for the purpose of handling documents and payments. However, the issuing bank retains ultimate responsibility for the obligations under the letter of credit. It's essential to clarify roles and responsibilities in the agreement to avoid any confusion.
What else can I help you with?
What is the meaning of the Advising Bank?
The bank who must provide the documents to the issuing bank
What does pending mean on a deposit in the bank?
Pending means, that the payment instrument that you deposited in your bank is awaiting clearing. Meaning it is being sent back to the issuing bank and funds would then be cleared from the issuing bank to your bank account.
What is mt700?
MT 700 is ... Issue of a Documentary CreditThis message is sent by the issuing bank to the advising bank. It is used to indicate the terms and conditions of a documentary credit which has been originated by the Sender (issuing bank).
Is it possible to cash a bank draft immediately?
Yes, it is possible to cash a bank draft immediately at the issuing bank or at a bank that has a relationship with the issuing bank. However, some banks may place a hold on the funds for a certain period of time before they are made available to you.
What is issuing bank?
An issuing bank is a financial institution that provides credit or debit cards to consumers and manages their accounts. It is responsible for underwriting the cardholder's creditworthiness and facilitating transactions made with the card. When a cardholder makes a purchase, the issuing bank authorizes the transaction and settles the payment with the merchant's bank. Additionally, it often handles customer service, billing, and fraud protection for cardholders.
What difference between LC by negotiation and LC by payment?
Without going into too much detail, Negotiation is the act of the Nominated bank in effecting payment to the beneficiary (in advance of its own receipt of funds from the issuing bank) of the value of the presentation, less an amount of deduction by reason of the time element between the early payment date and the expected date of receipt of funds from the issuing bank. An LC available by negotiation should not allow for immediate reimbursement (e.g authority to debit issuing bank's account, or claiming reimbursement from third party), and would require the nominated negotiating bank to first pay (or commit to pay at a future date) from its own funds and receive reimbursement only after the issuing bank has received the documents and have found them to be in order. In the event that it has commited to pay at a future date, to constitute an act of negotiation, such date must be earlier than the expected date of reimbursement from the issuing bank On the other hand, under an LC available by Payment, the nominated bank does not advance its own funds, but pays only after it is in a position to either debit the issuing bank's account in its books, or has received reimbursement by claiming on a nominated reimbursing bank.
What is MT 752 MT 754 and MT 799?
MT 752 Authorisation to Pay, Accept or Negotiate This message is sent by the issuing bank, or the nominated bank if so authorised by the issuing bank, to a paying/accepting/ negotiating bank in response to a request for authorisation to pay/accept/negotiate/incur a deferred payment undertaking previously requested via an MT 750 Advice of Discrepancy or otherwise. It is used to advise the Receiver that documents may be taken up, notwithstanding the discrepancies, provided they are otherwise in order. Primarily a message used to send acceptance for usnace LC documents MT 754 Advice of Payment/Acceptance/Negotiation This message is sent by the paying, accepting or negotiating bank, or the bank incurring a deferred payment undertaking, to the issuing bank. It may also be sent by the bank to which documents have been presented to a bank that has been nominated to pay/accept. It is used to advise the Receiver that documents were presented in accordance with the credit terms and are being forwarded s instructed. The MT 754 may also be used: for the settlement of the payment/negotiation as a pre-notification of a reimbursement claim from the claiming bank to the issuing bank is a pre-debit notification from the claiming bank to the issuing bank (note: where a pre-debit notification from the reimbursing bank to the issuing bank is required, banks should use the MT 799 Free Format message, specifying the future date of debit) MT 756 Advice of Reimbursement or Payment This message is sent by the issuing bank to the bank from which it has received documents or by the reimbursing bank to the bank from which it has received a reimbursement claim. It may also be sent by the bank nominated to pay/accept/negotiate/incur a deferred payment undertaking to the bank from which it has received documents. It is used to advise the Receiver about reimbursement or payment, to that bank, for a drawing under a documentary credit or which no specific reimbursement instructions or payment provisions were provided.
What do you call the bank issuing the cheque for payment?
commercial Bank...
What is the meaning of the Advising Bank?
The bank who must provide the documents to the issuing bank
What does pending mean on a deposit in the bank?
Pending means, that the payment instrument that you deposited in your bank is awaiting clearing. Meaning it is being sent back to the issuing bank and funds would then be cleared from the issuing bank to your bank account.
How do you write request letter to bank for issuing bank guarantee?
dear sir
What is the difference between restricted LC and confirmed LC?
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 mt700?
MT 700 is ... Issue of a Documentary CreditThis message is sent by the issuing bank to the advising bank. It is used to indicate the terms and conditions of a documentary credit which has been originated by the Sender (issuing bank).
Is it possible to cash a bank draft immediately?
Yes, it is possible to cash a bank draft immediately at the issuing bank or at a bank that has a relationship with the issuing bank. However, some banks may place a hold on the funds for a certain period of time before they are made available to you.
Who is the issuing bank for paypal?
PayPal operates as an online payment platform rather than a traditional bank, so it does not have a single issuing bank. Instead, it partners with various banks and financial institutions to facilitate transactions. In the U.S., PayPal is regulated as a money services business and has its own financial services division, which sometimes includes issuing debit cards and other products. For specific transactions, the issuing bank may vary based on the user's linked bank account or card.
Who is the Reserve Bank for the British Pound?
The Bank of England is the sole issuing authority for the British Pound.
Who issues England bank notes?
The Bank of England has the sole responsibility for issuing English banknotes.
