RBLR+BSS (0.00%)+CRP(0.20%): i.e. effectively 7.05% at present
Principal should be repaid by the sponsor corporate on due date. Cash Credit/Current Account of the corporate, as the case may be debited on the due date and credit should be made to the account of vendor. Opening of current account of sponsor corporate should be explored.
The Interest to be paid by the vendor, could be recovered upfront (i.e. at the time of disbursement) or at the back end (on the due date of Bills), as agreed by the sponsor corporate.
- In case the Interest payment is upfront, the notional interest may be deducted from the actual Bill amount discounted and the proceeds after recovering the interest may be credited to the Vendors account.
- In case the Interest Payment is back ended, the same will be borne by the vendor and to be paid on the due date. However insistence should be made by the branches for collecting the interest upfront at the first place