advising own credit

[jim]

dear sir,

can a bank advise a letter of credit issued by itself. in daily operation, i sometime see that some banks issues and advise the credit at the same time directly to the beneficiary. they even put advising stamp and charge the beneficiary for that.

[Ozoda]

If applicant and beneficiary are both the clients of the issuing bank, then the issuing bank advises the credit itself.

[SHAMEER]

as such there is no involvement of any advising bank in such scenario- l/c is issued directly to the beneficiary ,
the bank can take courier charges from beny ,where as taking advising charges is all based on bank's internal policy
like how people charge neg comm - when they are not negotiating anything and not even a nominated bank

[iLC]

i agree with sameer. charging beneficiary where the credit is directly advised to the beneficiary is a bank's internal policy. the beneficiary ofcourse has the option to refuse to pay.