IDBP stands for 'Inland Documentary Bill Purchase'. This facility is provided to purchase/negotiate documents/ bills (duly accepted by issuing Bank) submitted by the exporter/supplier on (deemed) export/supply made to local export oriented industries against inland L/C (supported by export L/C or export sales contract) usually denominated in Foreign Currency.
- This is a demand loan.
- This is usually a mode of (deemed) export finance.
- The acceptance must be communicated by the accepting Bank through SWIFT massage under valid code upon request of the purchasing Bank.
- A customer may be allowed IDBP maximum up to 90% of accepted value of confirmed acceptance.
- The tenure of loan is as per the maturity date of the confirmed acceptance.
- Liability is adjusted from the proceeds of the Bill. However, usually a General Letter of indemnity is obtained from the beneficiary (exporter/supplier) to the effect that if the proceeds against any bill is not received in due time, the bill/bills will be adjusted from the beneficiary's own source