A Domestic Letter of Credit (L/C) or Surat Kredit Berdokumen Dalam Negeri (SKBDN) is every written commitment by a Bank (opening bank) issued following a written request from an applicant, which binds the opening bank to:
- Perform payment to a beneficiary, or accept and pay a draft withdrawn by a beneficiary, or
- To grant authority to another bank to perform payment to a beneficiary, or to accept and pay a draft withdrawn by a beneficiary, or
- To grant authority to another bank to negotiate on a draft withdrawn by a beneficiary.
over the submission of documents, provided that the requirements and conditions of the Domestic L/C (SKBDN) are met.
- To sign a Domestic L/C (SKBDN) agreement.
- The Domestic L/C (SKBDN) must be opened in Rupiah (IDR).
- To deposit the Cover Marginal Deposit (MD) or to have obtained a financing facility from BNI Syariah.
- To comply with Bank Indonesia regulations.
- The issuing bank, applicant and beneficiary must reside in Indonesia and the trade of goods must be conducted domestically.
- Every opening and adjustment to the Domestic L/C (SKBDN) shall comply with the Decree of the Director of Bank Indonesia, drafted in Indonesian.
- The Domestic L/C is issued based on a Foreign L/C (Master L/C) or related to non-L/C payment methods for export purposes.
- The Domestic L/C (SKBDN) currency is determined in accordance with applicable terms.
Benefits of Domestic L/C (SKBDN) Transactions via BNI Syariah
- Documents are processed by BNI’s Trade Processing Centre which is ISO-certified in guaranteeing fast service for customers.
- BNI Syariah has built a good relationship with renowned correspondent banks around the world.