What is the receiving bank?
The receiving bank is a bank that accepts exchange accounts and becomes legally obliged to repay the bills when they ripen. It is a similar task of consulting bank, but consulting banks are only outside the country or the region of the customer, while the receiving bank can be domestic or international. The exchange part that resembles a check is a written announcement that a certain amount of money will be paid for a certain date for a certain date. To ensure the payment of the customer, the bank guarantees all exchange accounts by approval. To ensure the customer that the bank pays the exchange deed, all notes are signed - or approved - and the bank accepts all legal obligations. These accounts will not receive interest and the bank will not promise; At that time, only the amount registered in accounts will be paid to the customer.
Bills of Bills are notes that promise one side that the other party pays a fixed amount without Pan enforcement or reservation. The most common exchange law is the check, but there are many other types of accounts, depending on why one party pays another. The only tradable aspect of the law is the date of maturity. A fixed date means that the bill must be paid to a certain date, while the business date means that the customer can pay an account whenever he wants.
receiving bank and consulting bank are almost the same, but differ in how they work at an international level. The Advisory Bank is designed for customers who are in the region or country outside the counseling bank or country. These banks only accept international customers, because in addition to checks are also commonly used exchange accounts for international trade. The receiving bank accepts the AME responsibility, but it is also able to take exchange accounts from domestic clients.
The other reason why the receiving bank is called the bank is because of the bank. In addition to removable accounts from customers receive a receivingBank also accreditation from other banks. Upon receipt of the letter, the bank honors the financial application by paying a fixed amount specified in the letter of credit.