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Commercial Banking > Transaction Banking > Trade Finance
Domestic Bills Purchased / Discounted (DBP/D)

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Domestic Bills Purchased / Discounted (DBP/D)
Domestic Bills of Exchange Purchased-i (DBEP-i)
 
Definition

Domestic Bills Purchased / Discounted drawn under Documentary Credit or not drawn under Documentary Credit is a facility granted by the Bank to its customer whereby the Bank purchases, with recourse, the customer’s sight domestic sales documents or discounts usance domestic sales documents.

Domestic Bills of Exchange Purchased-i drawn under Documentary Credit-i or not drawn under Documentary Credit-i is a facility granted by the Bank to its customer whereby the Bank purchases, with recourse, the customer’s rights to the debt arising from sight or usance domestic sales documents.

The Bank finances the domestic sales under the concept of Bai’ al-Dayn whereby the Bank purchases the right to the receivable/debt due to the customer from the buyer.

 



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