How Long Collecting Bank May Hold Documents Under Collection

Chamnan · Post by **Chamnan** » Thu Mar 14, 2013 1:11 pm

Dear all

I've one question related to D/P. I've received the collection D/P from indian bank, and I've contacted the drawee many time but he still not come to collect this doc, he only said leave it at our bank he'll collect this doc. we've sent the swift to inform about this to remitting bank and ask for their instruction but no reply. Could we hold this doc for long time?

Regards

picant · Post by **picant** » Thu Mar 14, 2013 5:41 pm

Hi Pal,

once advised status of unpaid collection without further instructions from the remitting bank, the collecting bank will wait for 60 days and, then, returns the documents to remitting bank, under payment of its charges.
Other comments appreciated
Ciao

mskhan42 · Post by **mskhan42** » Wed Mar 20, 2013 4:02 pm

Dear Chamnan,

Agreed with Chamman, but it also depend on banks internal policy and local laws ad regulation,
in some countries as per foreign exchange regulation collection documents should be settled
within a month (30 days) otherwise same should be reported to Authority i.e. Central Bank,
so, inorder to avoid such situation, normally bank returned doc. on 29th or 30th day.

Regards,
M. Saqib Khan