Banking
NRB was established on
14 baisakh 2013
what is letter of credit
financial instruments used in international trade upon fulfilling specified terms
applicant in LoC
buyer/importer
beneficiary in LC
Seller/ exporter
who issues LC
buyers bank
who tells the seller about LC
advising bank
what is irrevocable LC
LC which cannot be changed with out both parties consent
what is revocable LC
LC which can be changed by buyer without seller approval
what is standby LC
acts as backup payment incase buyers default
what is confirmed LC
LC where seller bank adds guarantee
what is usance/ deferred LC
LC which is deferred to future date
what is sight LC
payment is made immediately upon document verification
what is cheque
negotiate instrument that instructs bank to pay specified amount to the payee
how many parties are involved in Cheque
3 parties
who is drawer, drawee and payee in cheque
person who gives order
the paying bank
the one who receives the payment
validation date of cheque
upto 6 months
what is bearer cheque
where amount is paid to the bearer of the cheque
what is order cheque
cheque payable to only the named person
what is stale cheque
cheque which validity ends after 3 months
which account is used for daily transaction
current account
which account is used for saving purpose
saving account
wha is a recurring account
where regular small deposits are made
what is joint account
where the account is under two or more account holder
what is bank guarantee
assurance of payment in case customer defaults on payment
what is bankers cheque
issued by banks for guaranteed payments