UPAS (Usance Payable at Sight) LC payment is a unique settlement method under a Letter of Credit where the exporter receives payment immediately (at sight) while the importer is granted a deferred payment period (usance period) to repay the bank. This arrangement is facilitated by the issuing bank or a third-party financer, which advances the payment on behalf of the importer.

UPAS LC Payment Process

1. LC Issuance: The importer’s bank (issuing bank) issues a UPAS LC at the importer’s request.
2. Shipment & Document Submission: The exporter ships the goods and submits the required documents to the negotiating bank.
3. Document Examination: The bank verifies whether the documents comply with the LC terms (clean presentation).
4. Payment to Exporter (At Sight): Upon clean document verification, the bank pays the exporter immediately.
5. Deferred Payment by Importer: The importer pays the issuing bank after the agreed usance period, including charges if any
6. Transaction Closure: The bank settles the payment, and the LC is closed upon full repayment.

UPAS Payment in Rivo:

• The document must be in Doc accepted state in order for the UPAS payment to be processed in Rivo.

• To complete the UPAS payment, follow the steps below.

• The status of the contract will be updated as Payment-Issued.

• Additionally, the user can view the UPAS payment in the documents section. 

Please refer to the following article to learn about Import LC Doc Presentation handling by Issuing Bank.