icon-forex

Forex Rate

Currency Code Unit Cash Below Deno 50 Cash (Deno 50 and above) and Non Cash Selling
US Dollar USD 1 102.73 103.25 103.85
Euro EUR 1 121.11 121.72 122.94
British Pound GBP 1 136.39 137.07 138.44
View More
News & Events View All

International trade

A "Letter of Credit" is used as an instrument for settlement of payment from commercial transactions like sales/purchases in national/international trade.

A Letter of Credit, is a written instrument issued by a bank at the request of its customer, the Importer (Buyer), whereby the bank promises to pay the Exporter (Beneficiary) for goods or services, provided that the Exporter presents all documents called for, exactly as specified in the Letter of Credit, and meet all other terms and conditions set out in the letter of Credit. A Letter of Credit is also commonly referred to as a Documentary Credit.

BOK issues all types of LC as per the requirement of our customers. The common types are as under:

  • Sight LC
  • Time/Usance LC
  • Differed/Mixed Payment LC
  • Revolving LC
  • Confirmed LC
  • Transferable LC
  • Back to Back LC
  • Advance Payment LC
  • Discounting LC

Documents required for issuing a Letter of Credit-

Before issuing an LC, you will require to have approved credit limits sanctioned by the bank. Moreover, imports and exports transactions that involve foreign currencies are subject to Central Bank (NRB)'s foreign exchange regulations and other International rules like UCPDC 600, URR etc. We will require you to submit the following documents along with the LC Application form for issuing a Letter of Credit:

  • Proforma Invoice/Sales contract/Indent containing at least-
  • Harmonic code (in eight digits) of the goods to be imported,
  • Country of Origin
  • Delivery and Payment terms and various other details like rate, quantity, total value, shipment country etc. (wherever applicable)
  • Bi.Bi.Ni. Form No. 3 (Mandatory as per NRB) with LC Application Form

Other documents required are:

  • Firm/Company Registration Certificate
  • PAN Certificate
  • Board minute (if applicable)
  • MOA (Memorandum of Association)
  • AOA (Article of Association)
  • Citizenship
  • Latest Tax Clearance Certificate

There are various other NRB provisions regarding import/export of goods from India and other third countries. We will help you to know these provisions so as to make you feel at ease while conducting import/export business.

View Interest Rate

Get connected with us socially