Bank Comfort Letter (BCL)

  • Issuance Procedure For BCL

    • Client will send us the filled in BCL Application form. We will prepare and send the Final draft of BCL to the Client.
    • Client should conclude with their Beneficiary using the final draft provided by us. Once the draft is concluded, Client should send us the following:
    1. Final BCL draft with their sign and stamp;
    2. Letter of Interest confirming acceptance for the draft and advising us to proceed further;
    3. Their Bank statement evidencing the availability of funds to cover the issuing Cost.
    • Mode of delivery - Physical copy or through swift.
    • Also an eKYC declaration letter will be given to Client, which needs to signed and sealed and sent back to us.
    • Once we receive the Signed eKYC declaration letter, we will issue an invoice of 1,500 USD for eKYC which client needs to pay.
    • Upon receipt of this payment we will release a eKYC link to client
    • Client needs to submit all the signed and sealed filled up documents, on the eKYC link/portal shared by us after which our KYC and Compliance team will review the documents.
    • Upon receiving the above documents, client should send us the filled in Offshore Account opening form, as its mandatory for the client to open account with us to obtain a RWA. Also, the standard Indemnity Documents of the bank will be provided to the Client for signing. The Client has to submit the KYC documents as per the list we will provide as a part of KYC and AML compliances including Transaction documents.
    • Once Client sends the signed and stamped filled up documents, we will send the same to our Compliance team.
    • Our compliance team will confirm if the submitted documents are in order and then we will get an invoice from the Bank towards the BCL issuing cost and also another invoice towards account opening fee.
    • After Client transfers the issuance cost as well as the account opening fee, within 10 working days we will set up the account and will get the BCL issued and it will be delivered to the Beneficiary bank.
    • End of transaction.

A comfort letter is a specific piece of writing that provides a degree of assurance that a particular commitment will ultimately be fulfilled. These letters serve an important purpose in various financial and business transactions.


Traditionally, a comfort letter is supplied by external auditors to organizations or individuals of interest, offering insights related to statutory audits, financial statements, and reports that are included in a prospectus. By doing so, the letter helps to instill confidence among potential investors or stakeholders regarding the accuracy and reliability of the information presented, thereby facilitating informed decision-making in a range of financial contexts.


Here are the primary benefits of issuing a BCL:


1. Strengthens Credibility and Trust

By issuing a BCL, a bank vouches for the buyer’s financial standing, building trust with the seller. This assurance helps in negotiations, as sellers feel confident that the buyer has the financial backing required to fulfill the contract.


2. Supports International Trade Deals

In global transactions where parties may be unfamiliar with each other, a BCL serves as an additional layer of financial security, showing that the buyer's bank endorses their ability to pay. This is particularly important in large transactions where sellers might need more than a buyer’s word for assurance.


3. Expedites the Transaction Process

A BCL can expedite the deal by reducing the seller's need to conduct extensive due diligence on the buyer’s financial status. Knowing that a bank has already reviewed and verified the buyer’s financial resources speeds up the process, allowing both parties to focus on the operational aspects of the deal.


4. Improves Negotiating Power for Buyers

Buyers who provide a BCL demonstrate strong financial stability, which can lead to favorable terms from the seller, such as discounts, longer payment periods, or priority service. Sellers are often more flexible with buyers who have bank-backed financial proof.


5. Minimizes Risks in High-Value Transactions

High-value or long-term contracts carry significant financial risks, and a BCL reduces concerns of non-payment for sellers. While not a guarantee of payment (as opposed to a letter of credit), it reassures sellers of the buyer’s financial capacity to uphold their end of the agreement.


6. Facilitates Compliance with Financial Regulations

In some sectors or jurisdictions, a BCL may be required to comply with regulations, especially when large sums or specific industries are involved. It can help companies align with financial and trade laws, making the transaction smoother and minimizing the risk of regulatory issues.


In essence, a Bank Comfort Letter is a valuable tool for establishing credibility, expediting negotiations, and reducing financial risk in international trade, helping both buyers and sellers proceed with confidence in high-stakes transactions