Bill Discounting - An Overview

Introduction

Bill discounting is form of financing, where in the bank takes the instruments drawn by parties on his (borrower's) customer and pay him immediately by deducting some amount as discount/commission. The bank then presents the bill to the borrower's customer on the due date of the bill and collects the total amount. If the bill is delayed, the borrower or his customer pays the bank a pre-determined interest depending upon the terms of transaction.

Feature Highlights

4   The instruments discounting interest / commission rates, with effective from and to dates

4   The recording of instruments discounting

4   The processing and releasing the post dated instruments

List of Activities