New 👉 Ask your RBI Grade B 2025 Preparation Queries Here!!

    Register

    Question

    What does the 'UCP 600' refer to in the context of

    documentary credit?
    A The governing body that oversees international trade regulations. Correct Answer Incorrect Answer
    B A set of guidelines issued by the World Bank for financial institutions. Correct Answer Incorrect Answer
    C A set of internationally recognized rules that govern documentary credits and letters of credit. Correct Answer Incorrect Answer
    D The specific documentary credit terms for trade between the European Union and the United States. Correct Answer Incorrect Answer
    E A certification program for banks issuing letters of credit. Correct Answer Incorrect Answer

    Solution

    UCP 600 (Uniform Customs and Practice for Documentary Credits) is a set of rules established by the International Chamber of Commerce (ICC) that governs the use of letters of credit in international trade. These rules provide standard procedures for the issuance, negotiation, and payment of documentary credits.

    Practice Next