ANNEXURE-I

(All amounts are in Rs. Lacs)

State Bank of India

___________Branch (Code _______)

PROPOSAL FOR ISSUE OF INLAND / IMPORT LETTER OF CREDIT FOR (INR/FC

……………………………)
(in words………………………………………………………………………………………… )

PART A (Operational Angle Approval)

1. Name of the Unit :

2. CIF No. :
3. Activity :
4. Address of the Unit :
5. Constitution : Prop. / Partnership Firm/ LLP/
Pvt Ltd.Co./ Pub Ltd
6. Details of proposed LC : Inland / Foreign
Amount Usance/ Period Approved rate Commission
Sight of LC in of commission to be
months (% PA) recovered
(in Rs.)*
LC amount

+Tolerance &
Intt
Total Amount

• Please mention card rate or special rates approved in sanction.

7. Purpose of proposed LC : Raw Material / Capex :

8. Advising Bank: 1st ………………………….. & 2nd …………………………

9. Confirming Bank (if required): ……………………………………………..

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 10. Details of Beneficiary :
i) Beneficiary’s Name :
ii) Beneficiary’s bank details
along with IFSC Code/ SWIFT Code:
iii) Brief address of Beneficiary :

11. Other observations / Confirmations:

i) LC is with adequate insurance as per bank’s norms. Yes/ No

ii) Whether LC is for anything other than purchase of raw material. Yes/ No
iii) Whether LC is without proof of movement of goods. Yes / No
iv) Means of transport of goods i.e. rail, road, ship, air etc. Please specify.
v) Whether the LC clauses contain any clause prejudicial to the interest of the
Bank? Yes/ No
vi) Beneficiary Opinion report/ Seller’s credit opinion report from the seller’s banker
is obtained and found satisfactory. The same is enclosed below:
…………………………………………………………………………………………..
vii) The LC application is duly stamped. Yes / No / NA (for e-trade applications)
viii) The imported goods are appearing in prohibited / restricted list of DGFT.
Yes / No
ix) The application / documents are signed by the authorized signatory of the unit.
x) Proposed LC application is complying with UCPDC / FEMA / and other
regulatory guidelines. Yes / No
xi) The LC request has been vetted and the underlying documents are found to be
in order. Yes / No
xii) The Customer CIF has been created and accounts linked properly in Exim Bills
and MFX. Yes / No
xiii) Country / SDN due diligence has been done and are found satisfactory.

Letter of Credit may be issued subject to Credit Angle Approval.

Submitted & Recommended by Approved by Controlled by

Desk Officer Chief Manager/ AGM /DGM/Branch Head

Date: Authorized Officer

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 PART B (Credit Angle Approval)

(Rs. In lac)
LC Limit
Current Outstanding (A)
Present Request for LC (B)
Total Outstanding (C=A+B)

1. Sanctioned LC Limit : For Working Capital Rs.

For CAPEX Rs.*
(* Amount of Term Loan sanctioned
(Rs…………………)

1. Date of Sanction :
2. CRA :
3. External Credit Rating : Valid upto: …………….

4. Position of Accounts as on …/……/…… are as under:

(Rs. In lacs)
Facility Limit DP Outstanding Irregularity if any
CC
TL & LOC
LC/Buyers
Credit
BG
CEL

Total

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5. Security Margin details:

Stipulated Margin Available Additional Margin details

Margin margin
% Amount % Amount required TDR Amount
(Amount) No./STDR
No.
Lien on
Account

6. Position of LC Liability Account :

i) Present outstanding :
ii) No. of LCs outstanding :
iii) No. of LCs opened during the
Last 12 months. :
iv) No.of LC devolved during the
Last 12 months. :
v) Details of LCs devolved during last 12 months:
Sl.No. Amount Date of Date of No. of days for
(Rs. In lac) devolvement regularization regularization

7. Last restitution of LC limits made on_______________(Date)

Observations of Restitution Committee & Compliance:

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 8. Comments on conduct of the Account:
.…………………………………………………………….………………………………
………………………………………………………………………………………………
………………………………………………………………………………………………

9. Other observations / Certifications:

a) The customer is KYC compliant. Yes / No

b) Whether the usance period is consistent with sanction terms. Yes / No
c) Whether LC being issued for the usual business operations of the customer.
Yes / No
d) Whether applicant and beneficiary are sister/ associate concern: Yes/No
e) If LC is against term loan, stipulated term loan margin as per sanction has been
ensured. Yes/ No

f) LC outstanding after issuance of the proposed LC is within the limits sanctioned/

overdrawn amount has the necessary approval of sanctioning authority. Yes/ No
g) LC period (including usance) is within the working capital cycle of the activity.
Yes / No
h) We note to deduct of stocks received against LC while calculating DP.

i) Purpose of Capex LC is as per the sanctioned TL and list of machinery etc. have
been scrutinized from the project report, if applicable. Yes / No
j) Whether inventories procured under LC relates to activity financed. Yes / No
k) Cash Budget has been obtained and examined. Yes / No
l) Any buyer’s credit outstanding against LC limits have been reduced from the DP.
Yes / No
m) Required margin is available as TDR/STDR and lien has been marked there
against. Sanction Resolution No. ………………….. dated
……………………………. by CLCC/RCCC/ CCSC/ CCCC/ ECCB. (enclosed)

Submitted & recommended by Approved by Controlled by

Service Officer/ CSO Relationship Manager/ Regional Manager/AGM/

Authorized Officer DGM/Branch Head
Date:

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