Nutan Bank

D.A. Bills Discounting Under L/c.

D.A. Bills Discounting Under L/c.

  • This facility is to be allowed against bills drawn on reputed parties, representing genuine trade transactions only.
  • Upcountry usance Bills should be accompanied by Railway Receipts (RRs) and/ or Motor transport receipts (MTRs) of approved transport companies in the name of self or in the name of our Bank, bill of exchange, invoices and schedule containing instructions of the borrower for interest, grace period, if any, etc.
  • Unexpired usance should normally not exceed 365 days.
  • No advance should be allowed against bills drawn on sister/associate/family concerns.
  • Margin may be fixed in the range of 0 % to 30 % for D.A. Bills under L/C and 10% to 30% for D.A. Bills (without L/C) Interest is to be charged for actual period of advance allowed only.
  • Bills discounting under L/Cs facility can be allowed only to our customers after obtaining sanction of Board of Directors.
  • Before discounting usance bills, L/C opening bank or confirming bank has to confirm that documents presented are in conformity with terms of L/C. Advances agst. Inland D A Bills (Under L/c) can be upto less than 1 year.

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