What do you mean by a 'Negotiating Bank' under Letter of credit? Posted on 11 June 2022 Category : For Beginners Negotiating Bank Negotiating bank is one of the main parties involved under Letter of Credit. Negotiating Bank,is the one who negotiates documents delivered to bank by beneficiary of LC. Negotiating bank is the bank that verifies documents and confirms the terms and conditions under LC on behalf of beneficiary to avoid discrepancies. The bank after satisfying itself that the documents conform with the letter of credit, agrees to either credit or pay the seller immediately under the terms of the letter of credit, or credit or pay the seller once it has received payment from the issuing bank. Learn Exports Imports Free, Click here Click here to know GST rate of your goods or service How to avoid delay in receiving OBL Original Bill of Lading? How to avoid two import DO charges at destination What is LC Letter of Credit in export import business What is legalization of documents by embassy? What is LET EXPORT order in export trade? How to book empty container for factory/CFS/ICD/port stuffing How to calculate CBM in LCL export shipments: How to calculate chargeable weight under airfreight in exports? How to check the time of contract on high sea sale transaction? How to Choose a product for export business How to cover the risk of Cargo loss or damage How to customs clear Cargo arrived in a port where in import license obtained for another port How to differentiate BL and HBL? How to differentiate CPT and DAP in shipping terms How to divert cargo from one port to another? How to Import to Zimbabwe? How to import to India from Zimbabwe? How to export from India to Zimbabwe? How to export from Zambia? How to Import to Zambia? How to import to India from Zambia? How is IGST calculated under Imports? How is IGST rate on imports treated? GST and e-Commerce Business, FAQ Definition of E-Commerce under GST TDS under GST, Frequently Asked Questions Does Interest attract on GST Tax payment delay? Mechanism of Payment of GST tax in India Levy of late fee for GST Tax returns filing in India Notice to GST return filing defaulters When to file Annual Return of GST online? Procedures to claim reduction in output tax liability of GST in India Procedures to claim Input Tax Credit under GST in India Meaning of ITC Ledger of Tax Payer under GST ISD Return Means Input Service Distributor under GST Meaning of term Inward supply under GST What is GST Invoice Format and Rules Comments nilesh bhandari: On 07 March 2019 Under LC is the documents are available with ANY Bank under negotiation (41D). Advising bank is beneficiary's Bank, can beneficiary send the documents to advising Bank (his own Bank ) for negotiation of Docs Munir: On 07 July 2019 Can issuing bank negotiate the documents? gabby: On 20 January 2020 UPAS LC drafts at: 180 days after negotiation. Bene presents docs to Bank A for checking, and Bank A will endorse on the back of the LC and sends docs to issuing bank, and will credit funds to the Bene upon receipt from issuing bank. In this case, LC will be discounted by the issuing bank. In this case, is the issuing bank considered the negotiating bank? Or is Bank A the negotiating bank? Olamide Akinlua: On 10 December 2021 Please kindly explain pre negotiation charges and post negotiations charges. James Mogambi : On 16 September 2022 Very good article. How can one define a cash cover in a credit?