Payment Terms

Introduction

This section includes the currency and amount, availability and tenor details of the LC.

Navigation

• Click Payment Terms in the Initiate LC Issuance Request  screen.

• The Payment Terms screen is displayed.

What you can do

The table below provides a brief description of the data that should be entered on the screen and the functions that can be  performed:

Field

Description

Drawee

Optional

Drop-down

Select the drawee of the LC.

Valid Values:

Select (Default)

Issuing Bank

Confirming Bank

Available with

Co-mandatory – if LC advice mode is SWIFT

Drop-down

Select the entity with whom the drafts are available.

Valid Values:

Select (Default)

Issuing bank

Advising Bank

Confirming Bank

Any bank

Available by

Co-mandatory – if LC advice mode is SWIFT

Drop-down

Select the mode through which the draft will be made available

Valid Values:

Select (Default)

Negotiation

Acceptance

Payment

Mixed Payment

Deferred Payment

Amount

Mandatory

Amount / 18(3)

Select the currency from the dropdown and specify the amount of LC in the next box.

Note:

Please see below related fields

• Tolerance +/-  

• Not Exceeding

Tolerance +/-  

Optional

Option button

Select to specify % limit for overdrawing/ under drawing LC amount given earlier.

Numeric / 18(7)

Once selected, user can specify the % range to which the amount mentioned above can be over drawn or under drawn.

One of these has to be entered if the Tolerance option button is selected. This value cannot exceed 100%.

Not Exceeding

Optional

Option button

Select to indicate the LC value cannot exceed amount indicated earlier i.e. it acts as the upper limit.

If ‘Not Exceeding’ option button is selected, any values specified for Tolerance will be ignored.

Additional Amounts Covered

Optional

Alphanumeric / 140

Use this field to specify additional amounts available to the beneficiary under the terms of the credit, such as insurance, freight, interest, etc

Tenor Indicator

Co-mandatory – if LC advice mode is SWIFT

Drop-down

Valid Values

Select (Default)

Sight

Usance

Specifies whether the LC is for immediate payment or has a Usance period.

Tenor Days and Description

Co-mandatory – should be entered only for tenor indicator is ‘usance’.

Alphanumeric / 105

Enter the usance tenor and corresponding description.

Mixed/ Deferred Payment Details

Co-mandatory – to be entered only when ‘Available By’ is Mixed/ Deferred.

Alphanumeric / 140

Enter the details if ‘available by’ is Deferred payment/Mixed payment

Confirmation Instructions

Mandatory

Specify if confirmation details are to be added or not.

Drop-down

Valid Values:

Without

Confirm

May Add

Charges paid by

Optional

Alphanumeric / 210

Specify details about who bears the charges for the LC issuance.

Debit Charges Account

Mandatory

Drop-down

Select the account to which charges are to be debited from the list.

Debit Margin Account

Mandatory

Drop-down

Select the account to which charges are to be debited from the list.

Select Limit ID

Mandatory

Enter or select the Limit ID from the Look Up which should be consumed for this transaction.