Standby LC extend is a feature in RIVO that allows a user to extend the validity of a standby letter of credit (LC) for a specific period of time. This feature allows the user to avoid the need for issuing a new LC, which can be a time-consuming and costly process. It is typically used when the original LC is expiring, and the user needs more time to complete the transaction or fulfill the terms of the original LC and not completion of agreed deal.
The process of Standby Letter of Credit (SBLC) extension can be done by the issuing bank by renewing the validity of a previously issued SBLC.
The issuance of extension which can processed only by the Issuing Bank.
The process of SBLC extension involves several steps:
First the Issuing Bank launch the extension under new claim and date of extension given in the Extend Until field in Claim Tab.
The Process of Extension will get completed only after the corporate request extend the transaction and the status turn to "Extension approved" as shown in below screen shot.
Now the bank user can able to issue/reject the transaction under status extend-approved. Upon issuance the Status will change to Extended.