Dear All,
Need a clarification, In case of payment for import bills under DC if SWIFT MT103 -Single Customer Credit Transfer is sent by the Issuing bank is it acceptable to send a MT756 along with this message.
(As MT 756 as per SWIFT standards- It is used to advise the Receiver about reimbursement or payment, to that bank, for a drawing under a documentary credit for which no specific reimbursement instructions or payment provisions were provided.)
Please give your valuable input for the same.
Regards
Divya
Is MT756 reqd for payment under LC where swift MT103 sent
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divyaparthas
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iLC
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never faced
is its a direct presentation by the beneficiary to the issuing bank? i guess so. otherwise the presenting bank would have sought for 202.
103 hardly go with the lc transactions. 756 is sent to the presenting bank by the issuing bank. in case of direct presentation there is no scope for a 756. i guess the beneficiary is after 103 to avoid reimbursement charges.
103 hardly go with the lc transactions. 756 is sent to the presenting bank by the issuing bank. in case of direct presentation there is no scope for a 756. i guess the beneficiary is after 103 to avoid reimbursement charges.
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divyaparthas
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How will Nego Bank Know of payment
In Case MT103 is sent(which is a rare scenario), still shouldnt the presenting bank know about the payment made for the bill to close the same in its books.How will the presenting bank about the payment made for bill?
So i feel MT756 should be sent to inform the presenting bank on the payment made .Please correct me if Iam wrong
So i feel MT756 should be sent to inform the presenting bank on the payment made .Please correct me if Iam wrong
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cristiand969
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payment
I've seen several L/C transactions with advice of settlement by MT103 rather than usual MT756.
You have to consider the following scenarios:
1. When a message 103 is received by the presenting bank directly from issuing bank , two cases can be:
+ presenting bank has a nostro account with issuing bank in which case 103 is deemed to be payment with direct coverage (without 202)
+ presenting and issuing bank has different correspondents: in this case issuing bank must provide coverage by an MT202 and you can treat MT103 as MT756 as long as contain your L/C reference.
2. If the message 103 is received from your correspondent (nostro acc different from issuing bank) it is originally sent as a serial message (i.e. issuing bank sent 103 to his correspondent, his correspondent sent 103 to your correspondent and your correspondent sent 103 to you).
All you have to do is to ensure that your L/C ref is quoted on MT103.
Hope this help you.
You have to consider the following scenarios:
1. When a message 103 is received by the presenting bank directly from issuing bank , two cases can be:
+ presenting bank has a nostro account with issuing bank in which case 103 is deemed to be payment with direct coverage (without 202)
+ presenting and issuing bank has different correspondents: in this case issuing bank must provide coverage by an MT202 and you can treat MT103 as MT756 as long as contain your L/C reference.
2. If the message 103 is received from your correspondent (nostro acc different from issuing bank) it is originally sent as a serial message (i.e. issuing bank sent 103 to his correspondent, his correspondent sent 103 to your correspondent and your correspondent sent 103 to you).
All you have to do is to ensure that your L/C ref is quoted on MT103.
Hope this help you.