What is
revocable letter of
credit?A revocable letter of credit can be amended or cancelled by the issuing bank at any time without the consent of the beneficiary, often at the request and on the instructions of the applicant. There is no security of payment in a revocable letter of credit (L/C). The words “this credit is subject to cancellation without notice”, “revocable
documentary credit” or “revocable credit” usually are indicated in the L/C.The revocable L/C was not uncommon in the 1970’s and earlier when dealing with less developed countries. It is really seen these days in international trade.
More summaries about the Letter of credit- Revocable Letter of Credit- Documentary Credit