Descrepancy Fee

[kirti]

Hi frendz

We have beneficiary, who always requests for amendment in the amount of Descrepancy Fee on LC's
I would like to know the following:
1) Is the descrepany fee amount same for all banks?
2) Who decides?
3) Can the Beneficiary/Applicant negotiate for the same?

comments welcome
rgds

[ajoy]

Hi

My two bits below ...

It is just like selling potatoes .. Who decides the price ? Does every potato seller sell at the same price... Are potatoes the same price in Dhaka and chicago? Can you bargain with potato seller? The answers are the same...

Ultimately demand and supply decides the pricing..

More specifically,

We have beneficiary, who always requests for amendment in the amount of Descrepancy Fee on LC's
I would like to know the following:

1) Is the descrepany fee amount same for all banks?
2) Who decides?
3) Can the Beneficiary/Applicant negotiate for the same?

1) No but within a country or gegraphical area it tends to be very close... In fact given the standarization that is happening in banks the fee structures have lesser variance today.

2) Well ultimately the market decides.. The bank must make money and the clients must be willing to pay the price asked for for the services, otherwise they go to another 'potato vendor'. Within banks it might be ne specific team like 'products' whoc decides the pricing levels.

3) Certainly yes... Everything is negotiable ... as the ' Godfather ' would say.

Cheers