FAQs - RA Financing
RA Financing is also a form of Trade Credits where IDBI Bank IBU acts as Reimbursing Bank against Reimbursement authorization issued by LC Issuing Bank, funds the Exporter's Bank of a trade on reimbursement claim on sight, within the Usance period of the LC.
No Independent limit requirement (inclusive in LC limits). The Buyer (Importer) can deal with Supplier/Seller on sight basis and negotiate to fetch a better deal. Also, saves on TCBG commission cost, and in fact, get access to best rates from international market.