New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Which of the following types of documentary credit

    allows the beneficiary (exporter) to receive payment even if the documents do not comply with the exact terms of the credit?
    A Revocable letter of credit Correct Answer Incorrect Answer
    B Irrevocable letter of credit Correct Answer Incorrect Answer
    C Confirmed letter of credit Correct Answer Incorrect Answer
    D Unconditional letter of credit Correct Answer Incorrect Answer
    E Standby letter of credit Correct Answer Incorrect Answer

    Solution

    A revocable letter of credit allows the terms and conditions to be modified or canceled by the importer (buyer) or issuing bank without the beneficiary's consent. This can result in the exporter being paid even if the documents do not fully comply with the letter of credit terms, as long as the changes are acceptable to the involved parties.

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