Question ID :
31629
LC Bills
LCBD
A bank Branch discounts LC bills from customers persons not having regular accounts with the Branch ( who are having facilities with other Banks).
The commission earned ( collected affront) forms part of major part of revenue for the Branch.
* What are the precautions to be observed?
* What are the general guidelines?
* What difference in treatment if it is LCBD foreign bills.?
* Are there any RBI directions to support.?
* How does the banking practice permit to allow facility soon after KYC is taken to non customers ( continue to have no operative account except LCBD).
Need your advice.
Posted by
S.Balasubramanian.
on
May 12, 2018
Filed Under
AUDIT