Inland Bill Discounting
Inland bill discounting ensures timely payments to the borrower from the bank.
The bank buys the bill of exchange drawn by the borrower before the due date and credits the value immediately, after deducting the agreed amount as discount / commission.
The bill is then presented to the borrower's customer on the due date of the bill and the customer collects the total amount due.
If the bill is delayed, the borrower or his customer pays the Bank a pre-determined interest depending upon the terms of transaction agreed upon with the Bank.