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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.

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

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

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.