Letter of credit- purchase, negotiation.

SBI issues LC to our Germany exporter. Purchase/ Negotiation.  Vendor's bank is forcing Indian importer and bank to release payment based on scan docs and thereafter they will release original shipping docs.

Is it permitted?

Kindly guide

Replies (2)
Quick Summary
This discussion addresses a common issue in Letter of Credit (LC) transactions where an exporter's bank requests payment based on scanned documents before releasing original shipping documents. The core question is whether this practice is permissible, especially when a Bill of Lading is crucial. Guidance is sought on the conditions stipulated within the LC that govern document submission and payment release.

Bill of lading is important.

What are the Condition in the LC? because payment will have to be released as per the Condition of sending documents  as mentioned in the LC.

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