Conflict Between Remitting Bank And Collecting Bank

Simple is Beautiful; the only thing came in my mind when thought of documentary collection. And I think more and more people are thinking the same in these days. Documentary Collection offers us far greater security than selling on open account; but not as much as a documentary credit. We should therefore be more cautious before starting selling using this method of payment. Documentary Collection Forum is an effort to help you on this way – admin; besttradesolution.com
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khratha
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Conflict Between Remitting Bank And Collecting Bank

Post by khratha »

Dear All
If remitting bank conflict with collecting bank over carrying out of an instruction ie. release doc to drawee without payment when the term of payment is DP.
should the drawer or remitting bank brings the case to the court?

Thank for your valuable comment.
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picant
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URC 522

Post by picant »

Hi Pal,

collections have Uniform Rules, if the transaction is under these rules is ok. Remitting bank may change the original instructions and collecting bank must follow them. Collecting bank may refuse to handle document and send back them unpaid. Moreover, if for AML, KYC and CT rules, the transaction appears suspect, the collecting bank may report it to the local authorities.
Other comments appreciated
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Nurun
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Hi Paul as collecting bank is acting on behalf of RMT bank , collecting bank should follow their instructions and relea

Post by Nurun »

Hi Paul as collecting bank is acting on behalf of RMT bank , collecting bank should follow their instructions and release docs to drawee free of payment .
nrprakashreddy
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Re: Conflict Between Remitting Bank And Collecting Bank

Post by nrprakashreddy »

Collecting bank doesn't have swift code of the bank.how it convay to them.
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picant
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Re: Conflict Between Remitting Bank And Collecting Bank

Post by picant »

Hi Pals,

The collecting bank, having no Swift RMA, may send by express courier the new instructions and list of authorized signatures is has no records of the signor of the originary cover letter.
It is possible to ask a friend bank to transmit new insructions by Swift, this was an acceptable way before the strict compliance terms!!!!!
Other comments appreciated
LLawrence
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Re: Conflict Between Remitting Bank And Collecting Bank

Post by LLawrence »

picant said everything that needs to be said.
IF there is no SWIFT relationship then it can be done via post, or maybe via SWIFT (involving the third bank).
afoonline
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Re: Conflict Between Remitting Bank And Collecting Bank

Post by afoonline »

this is very simple as instructions as to be followed by collecting bank and remember under URC 522, banks are not obligatory to pay. therefore, collecting bank will only act instructions on the covering schedule and advise remitting bank via swift that no liability will be claim on them for releasing documents without payment.
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