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Under Letter of Credit: 

• The seller & buyer agrees that payment will be made under Letter of Credit (LC).

• The buyer requests its bank for opening a Letter of Credit (LC) & transmit the same through SWIFT to Bandhan Bank (seller’s bank).

• The seller receives the Letter of Credit (LC), ships the goods & presents the documents to Bandhan Bank (remitting bank) along with the collection instructions.

• We will send the documents to the buyer’s bank (collecting bank) mentioning the collection instructions.

• Buyer’s bank notifies the buyer of arrival of the documents, for its payment/acceptance.

• The buyer pays the amount due or accepts the draft & in turn receives the documents.

• Buyer’s bank remits the amount to Bandhan Bank as per agreed terms of the LC & Bandhan Bank will credit the amount to the seller’s account.

Under Documentary Collections: 

• The seller & buyer agree that payment will be made via documentary collection.

• The seller ships the goods & presents the documents to Bandhan Bank (remitting bank) along with the collection instructions.

• Bandhan Bank sends the documents to the buyer’s bank (collecting bank) mentioning the collection instructions.

• Buyer’s bank notifies the buyer of arrival of documents for its payment/acceptance.

• The buyer pays the amount due or accepts the draft & in turn receives the documents.

• Buyer’s bank remits the amount to Bandhan Bank.

• Bandhan Bank will credit the amount to the seller’s account.

T&C apply