9.2.1.2 Process of Transfers from Export Islamic LCs
In the case of an Export Islamic LC, a new Islamic LC is opened for each transfer that you make from the original Islamic LC. The transfer amount is taken as the new Islamic LC amount.
On authorizing the transfer,
- An availment to the tune of the transferred amount is made against the original Islamic LC i.e. the outstanding amount of the Original Islamic LC is reduced by the transfer amount and
- A new Islamic LC is created based on the transfer details that you specified.
The transferred Islamic LC is separated from the original Islamic LC. Availment made from the new Islamic LC will not affect the outstanding of the Original Islamic LC.
Parent topic: Note on Transfers from Import and Export Islamic LCs