3 Initiate a Letter of Credit - Islamic

This topic provides the systematic instructions to initiate an Islamic Import Letter of Credit (LC) in the application.

Using this option, a user can initiate an Islamic Import Letter of Credit (LC) transaction as per the Sharia laws in the application. A Letter of Credit is a bank document which undertakes that the seller will receive payment against the stipulated documents, provided the terms and conditions have been satisfied.

On login to the application, the user can see the list of products for transaction which are meant for Islamic LC Creation as maintained at back office. The user can see only the Sharia permissible goods as maintained in back office.

An Import Letter of Credit provides the credit worthiness of the Importer, with the involvement of financial institutions such as banks.
Pre-requisites

User must be having a valid corporate login credentials to get into the system. This will be under a maker – approver system, or as per user’s access. User must be having a sanctioned limit /credit available for his perusal.

  1. Perform anyone of the following navigation to access the Initiate Letter of Credit screen.
    • From the Dashboard, click Menu, then click Trade Finance, and then click Letter of Credit. Under Letter of Credit, click Import Letter of Credit, select Initiate Import LC - Islamic.
    The Initiate Islamic Letter of Credit screen appears.

    Initiate Islamic Letter of Credit - Summarized View

    This is a default view; the user is landed on this screen on accessing ‘Initiate Letter of Credit - Islamic’ menu option. The summary of all the Initiated Islamic LC template of a corporate are listed with basic information of each LC. User can choose to check the complete details of a specific template by clicking on a card.

    The user has the facility to save incomplete transactions automatically as a draft, which can be resumed at a later stage. If user forgot to save those applications explicitly in draft/template or couldn't save those due to session timeout. On next login same day, system will give option to user to continue using auto saved application.

    In case when the user clicks on cross of the auto saved message in the ribbon, an alert that the saved application will get deleted is displayed.

    However, if the user is working from an existing Draft, it will also get automatically saved with the click of each next button. It will be saved with the old name only, and the default naming convention used for auto save will not be exercised here.

    Figure 3-1 Initiate Islamic Letter of Credit


    Description of Figure 3-1 follows
    Description of "Figure 3-1 Initiate Islamic Letter of Credit"

    For more information refer to the field description table below:

    Table 3-1 Initiate Letter of Credit - Islamic - Field Description

    Field Name Description
    Party Name Displays the name of the applicant.
    Party ID Displays the party Id of the LC product is displayed in a masked format.
    Search Specify the name of the LC template to search and view its details.

    Partial search is allowed.
    Initiate Letter of Credit Template Card The Initiate Letter of Credit template card displays the name of the Initiate Letter of Credit template along with the other details like date of update, name of the beneficiary, type of LC, LC amount and draft at.
    Initiate Letter of Credit Template Card Details Following details are displayed on each Letter of Credit Template card.
    Template Name Displays the name using which template is stored and can be used to initiate a LC application.
    Access Type Displays the access type assigned to the LC, that is Private or Public.
    Beneficiary Name Displays the beneficiary’s name against whom LC is to be created.
    Type Displays the corresponding LC product type and as supported by Host.
    LC Amount Displays the amount of LC.
    Draft at Displays the LC draft type i.e. 'Sight' or 'Usance'.
  2. Select and click the Islamic Letter of Credit template card whose details you want to view.
  3. Specify the name of the specific Islamic Letter of Credit Template in the Search field whose details you want to view.
    The specific Islamic Letter of Credit Template detail record appears.
  4. Perform one of the following actions:
    • Click Initiate LC to create a new Letter of Credit template.
    • Click Summarized View or Tabular to view the initiate LC template as Summarized or Tabular view
    • Click Delete to delete the initiated LC template card.
    Initiate LC Template - Tabular View

    The Initiating LC Template - Tabular View allows the corporate user to view the LC Template in table format.

    To view the Initiate Islamic Letter of Credit in tabular form:

  5. In the Initiate Islamic Letter of Credit - Summary page, click Tabular to view the initiate LC template as Tabular view.
    The Initiate Letter of Credit tabular view page appears.

    Figure 3-2 Initiate Islamic Letter of Credit - tabular view


    Description of Figure 3-2 follows
    Description of "Figure 3-2 Initiate Islamic Letter of Credit - tabular view"