Documentary credit helps minimise commercial risk and is ideal for protecting interests of both importers and exporters. This is a unique format that combines settlement and guarantee functions.
Import Letter of Credit
A documentary credit is a form of a non-cash settlement between the seller and the buyer in which the buyer’s bank (issuer) takes responsibility for paying the beneficiary upon the provision of the documents required by the credit conditions and on confirmation that the goods and/or services have been delivered/provided.
Sberbank offers the following documentary credit services:
Opens documentary credit for its clients, with confirmation from foreign banks if necessary, in Indian Rupees or foreign currency for their foreign trade operations.
Advises clients on letters of credit opened in their favour or on changes in those letters, with or without Sberbank confirmation;
Performs a full range of transactions involving letters of credit, such as making changes to the conditions of the letters of credit already opened, verifying documents, making payments upon demand, or demanding payments under advised letters of credit, and remitting export revenues;
Assigns the proceeds of letters of credit
Performs the transfer of letters of credit
Upon the request of clients, analyses the conditions of letters of credit advised by Sberbank, offer consultations on contractual payment terms and also provide assistance in preparing documents.
Letters of credit are used in accordance with international banking practice, such as ICC Uniform Customs and Practice for Documentary Credits, ICC Uniform Rules for Bank-to-Bank Reimbursements and other ICC documents, as well as Sberbank regulations and requirements for effective monetary legislation. For more information on transactions involving letters of credit, please contact Sberbank.