Roc charge

I have changed by bank limits and have given 100% FDR to old bank against outstanding LCs. But my old bank is saying that it cannot satisfy the charge with ROC till LCs are paid even though 100% cash margin is with them.

I am of the view that as LCs are 100% backed by cash margin there is no need for charge

Replies (1)

You are right if LC is backed by 100%margin money (by way of FD) no further security is required.

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