Page 199 - A Banker Down the Rabbit Hole

When I was spending sleepless night in urgent checking of documents
meticulously, the 'N bank' (Negotiating Bank) was approaching our head
office with their complaint of non-reimbursement by TT for payment of
non-discrepant documents, to our International Division in India. The
International Division was headed by a General Manager who had moved
from 'N' bank to our bank. The GM immediately ordered a status report
from our branch. We sent a detailed report with photo copies of all the
documents questioning the non-discrepancy certificate of the 'N' bank
and claimed that they misrepresented our bank by giving such a wrong
certificate to us. We had no liability for payment of the amount claimed
under LC and also there was no question of payment of interest on
delayed payment claimed by them. There was an urgent meeting of Letter
of Credit experts in the International Division. They deliberated a lot and
found our stand justified and conveyed the same to 'N' bank.

Now the buyer and seller started talking to each other for resolution of
the matter. After about 10 days, we got instructions from 'N' bank to
release documents to the buyer on accepting 15 % less payment as
agreed between the buyer and seller. We heaved a sigh of great relief
that finally the issue got sorted out.

Insights from the episode
1. Perseverance pays in any context.

2. The work life is not so simple. There are tough situations creating
dilemmas. Balancing act for customer's aspirations and bank's
interest becomes necessary.

3. We should go by logic where there is no law.

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196 | A Banker down the Rabbit Hole