Collecting Bank's Name Mentioned On Draft

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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sandeep_mt
Posts: 52
Joined: Mon Aug 29, 2011 12:13 am
First Name: sandeep
Last Name: mothkuri
Organization: axis bank ltd
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Collecting Bank's Name Mentioned On Draft

Post by sandeep_mt » Mon Dec 10, 2012 3:30 pm

Dear ALL

Kindly confirm is their any risk involved in handling the documents if the collecting bank name is mentioned on the draft sent by the Drawer bank or the availisation clause is mentioned on the draft and the collection shcedule of the drawer bank is silent about the same.
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picant
Posts: 2026
Joined: Wed Aug 20, 2008 1:49 pm

D/P or D/A

Post by picant » Tue Dec 11, 2012 9:19 pm

Hi Pal,

Documents are against payment or acceptance, or acceptance with bank guarantee or aval.
If the drawee is the importer c/o the bank, this could be domiciliation.
Ask the remitting bank if you have doubts.
Ciao
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