BUSINESS STUDIES

○ 🌸Presentation by Nisha
Business services
I. Introduction💮
*Cheque leaf

*Demand draft

*Bankers cheque [or] pay order

*Traveller’s cheque

*Format of letter of credit

*Bank guarantee
*Withdrawal slip.

*various deposits challan forms.

*Interest rates offering by bankers to customers for

term deposits and savings bank account.

*KYC documents for opening an account.

 Cheque leaf📝

● A Cheque is a negotiable instrument . It can either be

open or crossed. An open cheque is the bearer cheque . It
is payable over the counter on presentment by the payee
to the paying banker. While a crossed cheque is not
payable over the counter but shall be collected only
through a banker. The amount payable for the crossed
cheque is transferred to the bank account of the payee.
Demand draft🏦
● A demand draft is a method used by an individual to make
a TRANSFER PAYMENT from one bank account to another .
Demand drafts differ from regular normal CHECKS in that
they do not require signatures to be cashed . A demand
draft is prepaid instrument ;therefore you cannot stop
payment on it in the case of fraud or mis-intended
recipient.Demand draft can be used to defraud people,
there are regulations now in place that allow victims to
recover funds from the holding bank.
Banker’s cheque📄
● A banker’s draft , also known as Banker’s cheque.It is
asking a bank to write a cheque for you. You give them
your money and they give you a cheque for that amount to
give to the person you’re paying.For this reason , they
do not bounce because of lack of funds.Banker’s draft are
often used for larger amounts and when people or
organisations won’t accept a personal cheque.There are
no. of ways to transfer money to and from your bank
account which can be faster and safer than using a
banker’s draft.
Traveller’s cheque✈🗺
● A traveller’s cheque is medium of exchange that can be
used in place of hard currency . They can be denominated
in one of a no. of major world currencies and are
preprinted , fixed-amount cheques designed to allow the
person signing it to make an unconditional payment to
someone else as a result of having paid the issuer for
that privilege.Traveler’s checks are generally used by
people travelling to foreign countries.
Format of letter of credit📝
SAMPLE LETTER OF CREDIT
TEMPLATE / PROFORMA
TO: { BUYER} PROFORMA INVOICE:
YOUR REF.:
YOUR REF. DATE:
We have indicated below those terms and conditions that we would find acceptable in a letter of
credit issued by your bank. Your efforts to gain compliance with these terms and conditions in
the issuance of this letter of credit will ensure prompt dispatch of your order. If your bank is
unable to issue the credit within the following guidelines, please contact us providing information
on those areas that must be altered. This will eliminate needless delay and costs involved with
amendments after the credit has been opened. Only those items marked with an "X" will apply.
1. [ ] The letter of credit is to be irrevocable and subject to the Uniform
Customs and practice for Documentary Credits, as published and updated
from time to time by the International Chamber of Commerce.
2. [ ] The letter of credit is to be [ ] Advised [ ] Confirmed by our bank:
KeyBank National Association
Attn: International Operations
Telex No.: 212525 SNB UR
SWIFT No.: KEYBUS33
ABA.: 041001039
3. [ ] The beneficiary is to be shown as:
4. [ ] The letter of credit is to be payable upon presentation of drafts drawn
at:
A. [ ] At sight
B. [ ] ___ days after the date of the transport document (i.e., 90
days after date of B/L)
C. [ ] ___ days after sight (i.e., 90 days after sight)
D. [ ] Other: ____________________________
5. [ ] The letter of credit is to be available by negotiation with any bank.
6. [ ] The letter of credit is to be payable in:
[ ] U.S. dollars
[ ] Other: _______________________________
7. [ ] The amount of the letter of credit is to be specific as:
[ ] "Not to exceed “_____________ [ ] "About “_______________
8. [ ] The following documents are normally provided if required in the
letter of credit. Please avoid the requirement for any other documents
without prior agreement on our part.
A. [ ] Signed Commercial Invoice, one original and ______
copies.
B. [ ] Packing List in ______ copies.
C. [ ] Negotiable Marine/Air Insurance policy or certificate in
duplicate for 110% of invoice value covering all risks and
war risks and ____________________________
D. [ ] Full set of clean on board ocean bills of lading
issued to order of : __________________________
E. [ ] Clean air waybill consigned to:
__________________________________________
F. [ ] Other documents:
9. [ ] The letter of credit is to specify shipment of:
____________________________________________
____________________________________________
____________________________________________
10[ ] Other __________ (i.e.: FCA, FAS, CIP, etc.)
11. [ ] The Bill of Lading is to be marked:
[ ] Freight Prepaid
[ ] Freight Collect
12. [ ] Transshipments:
[ ] Are permitted
[ ] Are not permitted
13. [ ] Partial shipments:
[ ] Are permitted
[ ] Are not permitted
14. [ ] Latest Shipment Date __________________
15. [ ] Latest Presentation Date of Documents to the Negotiating bank to be
____ days after each shipment date.
16. [ ] Expiration Date of letter of credit to be __________________
17. [ ] The letter of credit should specify that all banking charges outside
the
country of the applicant are for the account of the [ ] applicant [ ]
beneficiary.
18. [ ] letter of credit to be transferable.
19. [ ] Other special instructions.
. 2. Complying with Documentary Requirements
Exporters and freight forwarders who frequently assist the exporter is
preparing documents for
shipment are aware that terms and conditions in letters of credit are
to be fulfilled exactly as
stated. The opening bank has set forth terms as requested by the
applicant, or buyer, and
neither the opening bank, negotiating bank or designated paying bank
will honor documents
other than those specified. Furthermore, some documents required under
a letter of credit are
specifically described as to the information which must be contained
in the specified document.
Bank guarantee💯
● A bank guarantee is a type of financial backstop offered
by a lending institution. The bank guarantee means that
the lender will ensure that the liabilities of a debtor
will be met.In other words , if the debtor fails to
settle a debt , the bank will cover it. A bank guarantee
enables the customers, or debtor , to acquire goods , buy
equipment or draw down a loan.Parties to loan choose
direct guarantees for international and cross-border
transactions.
Withdrawal slip📜
● A withdrawal slip is written instruction to the bank to
pay the said amount to the account holder.The funds are
debited from the account no. mentioned . Much like the
deposit slip,a bank withdrawal slip is a record of your
banking transaction . It helps the bank keep track of
your WITHDRAWALS.
Various deposit challan forms
Interest rates
offering by
bankers to
customers💰
KYC Documents Individuals📑
Individuals (Documents acceptable as proof of identity/address)
Passport
Voter's Identity Card
Driving Licence
Aadhaar Letter/Card
NREGA Card
PAN Card
Credit cards and debit cards 💳
“This brings me to the end of my
presentation”
Thankyou🤗