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FAQ

Q. What is the validity of Government cheque?

 

Ans. RBI cheque is valid for three months excluding the month of issue.

 

Q. What is a Letter of Credit (LC)?

 

Ans. A Letter of Credit is a written undertaken given by a bank on behalf of the buyer(Applicant) of goods or services to pay the seller (Beneficiary) of goods and services, a certain sum of money, provided he presents the documents stipulated in the credit within the validity of the credit.

 

Q. What are the various types of LC?

 

Ans. (i) Revocable LC    (ii) Irrevocable LC    (iii) Confirmed LC
       (iv) Revolving LC

 

Q. What are documents required for opening of LC?

 

Ans. User demand, justification for procurement (Form MM06 DRDO Purchase Mgmt 2006),Store Procurement Committee minutes for procurements exceeding Rs. 1 Lakh, CFA approval for the procurement,Tender Enquiry/Notice, Quotation/Bids ,Technical Evaluation Committee minutes,Tender Purchase Committee minutes along with the Comparative Statement of Tenders,Foreign Supply/Purchase order (ink signed) and its amendment if any,PAC concurrence in case procurement is made on PAC basis,Foreign Exchange release/sanction letter for the procurement,Performance Bank Guarantee

 

Q. What documents are required for Direct Bank Transfer cases?

 

Ans. User demand, justification for procurement (Form MM06 DRDO Purchase Mgmt 2006),Store Procurement Committee minutes for procurements exceeding Rs. 1 Lakh, CFA approval for the procurement,Tender Enquiry/Notice, Quotation/Bids ,Technical Evaluation Committee minutes,Tender Purchase Committee minutes along with the Comparative Statement of Tenders,Foreign Supply/Purchase order (ink signed) and its amendment if any,PAC concurrence in case procurement is made on PAC basis,Foreign Exchange release/sanction letter for the procurement,Performance Bank Guarantee, invoices, airway bill, packing list and other documents as per Contract.

 

Q. How is amendment/ Extension of LC carried out?

 

Ans. Directorate will prepare the case for amendment /extension duly supported by attested copies of CFAs approval, clearly specifying as to who will bear charges for the same.  

 

Q. What happens if delivery period expires and goods are not delivered.  

 

Ans. DRDO will propose the case for extending the Delivery Period duly supported by CFAs approval. Such DP extension should clearly mention as to whether the same is with Liquidated Damage(LD) or without LD. In cases without LD, the concurrence of Integrated Finance needs to be obtained.