Internship Report on Overall Procedures & Challenges of Opening Letter of Credit at Dhaka Bank (PLC)

Abstract

This study offers a thorough examination of Dhaka Bank PLC's Letter of Credit (L/C) procedure. A common financial tool in international trade that gives importers and exporters payment security is the Letter of Credit. Issue, document verification, payment settlement, and risk management are among the important phases of the L/C process highlighted in the paper.

During my internship, I watched and took part in tasks like handling exchange rate considerations for cross-border transactions, processing payments by the L/C rules, and confirming the exporter's given documentation. The role of banks in promoting seamless commercial transactions, reducing risks, and guaranteeing adherence to global standards like the Uniform Customs and Practice for Documentary Credits (UCP 600) is also covered in the paper.

The analysis also highlights issues with the L/C process, like document inconsistencies and exchange rate fluctuations, and offers solutions to increase operational effectiveness. The value of precision, cooperation, and transparency in managing global commerce transactions was emphasized by this experience.

In addition to including problems with the L/C process, such as inconsistent documents and fluctuating exchange rates, the analysis also provides options to improve operational performance. This event highlighted the importance of accuracy, collaboration, and openness in handling international business transactions.