XBL bank gave an undertaking to the third party for the supply of goods/ services to pay amount of Rs. 2 crore on behalf of the Mr. X, a business man, provided the terms and conditions of the undertaking are complied with this services of banks is known as-
A. Issuing letter of guarantee
B. Issuing letter of Comfort
C. Issuing letter of credit
D. Issuing letter of understanding
Answer:C
XBL bank gave an undertaking to the third party for the supply of goods/ services to pay amount of Rs. 2 crore on behalf of the Mr. X, a business man, provided the terms and conditions of the undertaking are complied with this services of banks is known as-
A. Issuing letter of guarantee B. Issuing letter of Comfort C. Issuing letter of credit D. Issuing letter of understanding