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Finance/Banking

Finance is a field that deals with the study of investments. It includes the dynamics of assets and liabilities over time under conditions of different degrees of uncertainty and risk. Finance can also be defined as the science of money management. A key point in finance is the time value of money, which states that purchasing power of one unit of currency can vary over time. Finance aims to price assets based on their risk level and their expected rate of return. Finance can be broken into three different sub-categories: public finance, corporate finance and personal finance.

Banking in its modern sense evolved in the 14th century in the rich cities of Renaissance Italy but in many ways was a continuation of ideas and concepts of credit and lending that had their roots in the ancient world. In the history of banking, a number of banking dynasties — notably, the Medicis, the Fuggers, the Welsers, the Berenbergs and the Rothschilds — have played a central role over many centuries. The oldest existing retail bank is Banca Monte dei Paschi di Siena, while the oldest existing merchant bank is Berenberg Bank.

Letter of Credit

A letter of credit is a document, typically from a bank (Issuing Bank), assuring that a seller (Beneficiary) will receive payment up to the amount of the letter of credit, as long as certain documentary delivery conditions have been met. In the event that the buyer (Applicant) is unable to make payment on the purchase, the Beneficiary may make a demand for payment on the bank. The bank will examine the Beneficiary's demand and if it complies with the terms of the letter of credit, will honour the demand.

Letter of Credit Procedure

Participants in LC Process

  • Buyer
  • Issuing Bank
  • Advising Bank
  • Seller (Beneficiary)

9 Steps in LC Process

I. Buyer and seller agree to terms including means of transport, period of credit offered (if any), and latest date of shipment acceptable.
II.Buyer applies to bank for issue of letter of credit. Bank will evaluate buyer's credit standing, and may require cash cover and/or reducing of other lending limits.
III.Issuing bank issues LC, sending it to the Advising bank by airmail or electronic means such as telex or SWIFT.
IV.Advising bank establishes authenticity of the letter of credit using signature books or test codes, then informs seller (beneficiary).
V.Seller should now check that LC matches commercial agreement and that all its terms and conditions can be satisfied.
VI.Seller ships the goods, then assembles the documents called for in the LC (invoice, transport document,etc.).
VII.The Advising bank checks the document agianst the LC. If the documents are complaint, the bank pays the seller and forwards the documents to the issuing bank.
VIII.The issuing bank now checks the document itself.If they are in order, it reimburses the seller's bank immediately.
IX.The issuing bank debits the buyer and releases the documents (including tranport document), so the buyer can claim the goods from the carrier.
Below are the forms related to LC click on links below to view or download
1.ApplicationView | Download
2.Cover LetterView | Download
3.Agreement Cum Pledge LetterView | Download
4.Application for documentaryView | Download
Name of Festival Date Day State
Sankranti/ Pongal 15-Jan-16 Friday AP/TS
Republic Day 26-Jan-16 Tuesday AP/TS
Maha Shivratri 7-Mar-16 Monday AP/TS
Holi 23-Mar-16 Wednesday AP/TS
Babu Jagjivan Ram's Birthday 5-Apr-16 Tuesday AP
Ugadi 8-Apr-16 Friday AP/TS
Dr B. R. Ambedkar's Birthday 14-Apr-16 Thursday AP/TS
Sri Rama Navami 15-Apr-16 Friday AP/TS
May Day 1-May-16 Sunday AP/TS
Ramzan (Id-Ul-Fitr) 6-Jul-16 Wednesday AP/TS
Independence Day 15-Aug-16 Monday AP/TS
Sri Krishna Astami 25-Aug-16 Thursday AP
Vinayaka Chaturthi 5-Sep-16 Monday AP/TS
Mahatma Gandhi's Birthday 2-Oct-16 Sunday AP/TS
Durgastami 9-Oct-16 Sunday AP/TS
Vijaya Dasami/Dussehra 11-Oct-16 Tuesday AP/TS
Moharam 12-Oct-16 Wednesday AP/TS
Deepavali 30-Oct-16 Sunday AP/TS
Karthika Purnima/ 14-Nov-16 Monday AP
GuruNanak Jayanthi
Eid Miladun Nabi 12-Dec-16 Monday AP/TS
Christmas Day 25-Dec-16 Sunday AP/TS
Name of Bank Balance Enquiry Mini Statement
Axis Bank 09225892258  1800 419  6969
Andhra Bank 09223011300
Allahabad Bank 09224150150  09224150150
Bank of Baroda 09223011311
Bank of India 09015135135
Bharatiya Mahila Bank  09212438888
Canara Bank 09289292892  092892928921
Central Bank of India 09222250000  09555144441
Corporation Bank 09268892688
Dena Bank 09289356677 09278656677
Dhanlaxmi Bank  08067747700  08067747711
Federal Bank  1800-425-1199  08067747711
HDFC Bank  18002703333  18002703355
ICICI Bank  022-30256767  022-30256868
IDBI Bank  09212993399
Indian Bank  09289592895
Induslnd Bank +919223173927 +919223173927
Karnataka Bank  1800-425-1445  1800-425-1446
Karur Vysya Bank  09266292666  09266292665
Kotak Mahindra Bank  18002740110
Oriental Bank of Commerce (OBC)
Punjab & Sind Bank  1800221908
Punjab National Bank (PNB)  18001802222
State Bank of India (SBI)  09223766666  09223866666
SBBJ  09223766666  09223866666
Syndicate Bank  09241442255
South Indian Bank  09223008488
UCO Bank  09278792787  09213125125
Union Bank of India  09223009292
United Bank of India  09015431345
Vijaya Bank  1800-266-5555  1800-266-5556
Yes Bank  09840909000

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