L.

C (Letter of Credit) is an undertaking by a bank , on
behalf of the buyer(importer), to the beneficiary(seller)
of the credit that it would honour bills drawn in terms of
the credit.
Irrevocable Letter of Credit: Cant be amended or
cancelled by the opening bank without the
consent of all the concerned parties.
Revocable Letter of credit: Can be revoked at any
time by the opening bank without the consent of
the parties.
Standby Letter of Credit: One bank advises
another bank to pay only if a transaction agreed
to by the opener of the credit with the
beneficiary is not performed.
Revolving Letter of Credit: On payment of bill the
LC shall be reinstated by the value of the bill
negotiated but within the original value of the LC
and before its validity. The validity of such LCs
should not be more than one year.
Red Clause Letter of credit: When the opening
bank requests the advising bank to give loan to
the exporter for the purpose of export.
Green Clause Letter of Credit: When the Red
Clause credit provides for the grant of storage
facilities at the port of shipment.
Back to Back Letter of Credit: When an inland L/C
is backed by the Foreign Letter of Credit for
supply of goods by the manufacturer to the
exporter for onward exporting the goods to
foreign contry.
Demand/sight bill under import LC shall be crystalised if
not retired by the customer on the 10th day from the
date of receipt thereof by converting the foreign currency
amount in to rupees at the Banks Bill selling rate.
UCP(600) (Uniform Custom and Practices for
Documentary Credits): various rules, practices
and assumptions relating to LC.
Codified by ICC (International Chambers of
Commerce) Paris and effective from 01.07.2007.
There are 39 articles in the UCP 600(2007).
R-Return enables RBI to arrive at Balance of Payment
(BoP) position of the country. GMUK consolidates R
return of all branches and submits fortnightly (within 7
days of corresponding fortnight) to RBI in respect of
foreign exchange transactions.
Two types- R-Return (Nostro)- submitted by A and B
branches and R-Return (Vostro)- to be submitted by
branches which are maintaining the Vostro a/c of foreign
banks.
ENC - report of all export bills negotiated and sent for
collection
XOS Export receivables outstanding for more than
prescribed period. To be submitted to RBI at half yearly
interval(30thjune and 31st Dec).
NRI DEPOSIT SCHEMES NRE a/c Non Resident
(External)
A,B,C-1,C-2 branches can open Credit only by foreign
source CA,SB and others Term Deposit in rupees only
Not Taxable. loan can be given and be repaid from local
or external sources Both Principal and Interest
repatriable. Funds can be transferred to NRO and FCNB
a/c interest rates have been freed by RBI Exchange risk
faced by the depositor Nomination allowed but
repatriation allowed if nominee is NRI Joint a/cs with
non residents are allowed
NR(O) a/c (Non Resident Ordinary)
A,B,C-1,C-2 branches can open Credit by local & foreign
source CA,SB and others Term Deposit in rupees only
Taxable. TDS @ 30% loan can be given and be repaid from
local or external sources Principal repatriable only up to US
$ 1 million p.a. Interest repatriable. Transfer to NRE a/c not
allowed Domestic interest rates applicable Not convertible
in other currencies so no exchange risk Nomination allowed
if nominee is NRI, but repatriation will not be allowed, his
NR(O) a/c will be credited Joint a/cs are allowed with close
relatives / other NRIs. Foreign tourists during short visit to
India can also open up to a maximum period of 6 months

VISHWA YATRA FOREIGN TRAVEL CARD
MIN INTIAL AMT/RELOAD 1)USD- USD 200 (2)GBP 120
(3)CAD 200 (4) EUR 150 (5) AUD 200 (6) JPY 15800
(7) SAR 750 (8)SGD - 250
(1)SBI EXPRESS (UK) MIN GBP 500, MAX GBP
5000/TRANSACTION, GBP 12000 MAX MONTHLY(2) SBI
EXPRESS REMIT (US) MIN $50 ,$5000/- PER DAY ,MAX -
@10,000/- PER DAY.MAX REMMITTANCES 3- WEEKLY 6- FORT
WEEKLY 12 MONTHLY (3)SBI EXPRESS (GULF)MIN RS.500/-
MAX RS.10,00,000/-