For LC Bill Discounting, following requirements shall be met:
- The bills should be drawn under irrevocable Letters of Credit issued by a Commercial Bank in India.
- The Bills drawn are in strict conformity with the terms of the LC.
- Bills of exchange should have arisen out of bonafide commercial or trade transactions.
- Bill of exchange
- Letter of credit
- Receipted Challan being proof of delivery of goods/ Documents of title to goods evidencing despatch of goods (RR/ LR/ shipping documents)
- Any other relevant documents.
- The bills should be got accepted by the drawee through their bankers.
- Interest for the usance period, actual postage and handling charges will also be collected.