Legal Question in Banking Law in India

Re: letter of credit

it is given by bank to show ur credibility in money terms.

Re: letter of credit

Letter of credit is issued by a Bank on behalf of its customer to another who supplies goods or services to customer, holding out that the supplier will be paid the amount represented by Bills or documents to be produced as per the letter of credit. It is a sort of guarantee for payment if the conditions stipulated in the letter are complied with. If such a letter is issued to a domestic supplier it is inland letter of credit. If it is issued to a foreign supplier it is foreign letter of credit.

Re: letter of credit

Letter of credit is a kind of guarantee given by a bank on behalf of its customer to any third party.When LOC is issued by Indian bank then it is Inland credit and when it is issued by a foreign bank then it is foreign credit.