Contents

1. Preface

  • 1.1 Introduction
  • 1.2 Audience
  • 1.3 Documentation Accessibility
  • 1.4 Organization
  • 1.5 Related Documents
  • 1.6 Glossary of Icons

    • 2. Islamic Letters of Credit - An Overview

  • 2.1 Features
  • 2.2 Operations supported on an Islamic LC
  • 2.3 SWIFT Messages for an Import Islamic LC
  • 2.4 SWIFT Messages for an Export Islamic LC
  • 2.5 SWIFT Messages for a Standby Islamic LC
  • 2.6 SWIFT Messages for a Clean Islamic LC
  • 2.7 SWIFT Messages for a Guarantee
  • 2.8 SWIFT Messages for a Shipping Guarantee
  • 2.9 Processing Commissions and Charges
  • 2.10 Variations Supported for an Islamic LC
  • 2.11 Red Clause Letter of Credit
  • 2.12 Revocable and Irrevocable Islamic LCs
  • 2.13 Transferable and Non Transferable Islamic LCs
  • 2.14 Revolving and Non Revolving Islamic LCs
  • 2.15 Sight and Usance Islamic LC
  • 2.16 Open Ended Islamic LCs
  • 2.17 Cash Collateral against an Islamic LC
  • 2.18 Availment against an Islamic LC
  • 2.19 Reports

    • 3. Maintenance for Islamic Letters of Credit

  • 3.1 Documents and Clauses details
  • 3.1.1 Maintaining Documents and Clauses
  • 3.1.2 Specifying Values for the User Defined Fields
  • 3.1.3 Operations on the Document Maintenance Record
  • 3.2 Goods Details
  • 3.2.1 Maintaining Goods
  • 3.2.2 Specifying Values for the UDF
  • 3.2.3 Operations on a Goods/Commodity Maintenance Record
  • 3.3 Free Format Text (FFT) Codes Details
  • 3.3.1 Maintaining Free Format Text (FFT) Codes
  • 3.3.2 Specifying Values for the User Defined Fields
  • 3.3.3 Operations on the FFT Maintenance Record
  • 3.3.4 Maintaining INCO Terms
  • 3.4 Maintaining Insurance Company Details
  • 3.5 Maintaining Customer Insurance Details
  • 3.5.1 Capturing Utilization History Details
  • 3.6 Maintaining Import License Expiry Date
  • 3.7 Application of Exchange Rate Type based on Transaction Amount

    • 4. Defining Attributes specific to an Islamic LC Product

  • 4.1 Creating an Islamic LC Product
  • 4.1.1 Specifying Preferences for a Product
  • 4.1.2 Specifying Sanction Check Details
  • 4.2 Generating Islamic LC Expiry/Closure Advices
  • 4.2.1 Opting to Track Limits
  • 4.2.2 Setting Criteria for Status Change
  • 4.2.3 Specifying the Applicable Rules of a Guarantee
  • 4.2.4 Generating Advices for the Insurance Company
  • 4.2.5 Specifying Event for Reissue of Guarantee
  • 4.2.6 Generating Advices for Faxing Islamic LC Confirmation to Counterparty

    • 5. Processing an Islamic LC Contract

  • 5.1 Islamic LC Contract Details Screen
  • 5.1.1 Invoking the Islamic LC Contract Details Screen
  • 5.1.2 Specifying Details of an Islamic LC
  • 5.1.3 Uploading Islamic LCs/Guarantees
  • 5.2 Islamic LC Contract Details Screen Description
  • 5.2.1 Description of the Islamic LC Contract Details Screen
  • 5.2.2 Specifying the Main Details of an Islamic LC
  • 5.2.3 Viewing the Media Addresses of a Customer
  • 5.2.4 Capturing Draft Details
  • 5.2.5 Specifying Insurance Details
  • 5.2.6 Specifying Details of the Parties involved in an Islamic LC
  • 5.2.7 Specifying Parties Limits
  • 5.2.8 Specifying the Media Details for a Party
  • 5.2.9 Specifying Credit Administration Details
  • 5.2.10 Specifying Advices for an Islamic LC
  • 5.2.11 Specifying the Free Format Instructions that should accompany an Advice
  • 5.2.12 Specifying Goods and Shipping for an Islamic LC
  • 5.2.13 Specifying Document Details
  • 5.2.14 Specifying Tracer Details for an Islamic LC
  • 5.2.15 Specifying Other Details of an LC
  • 5.2.16 Specifying Settlement Instructions
  • 5.2.17 Viewing Event Details
  • 5.2.18 Defining Commission and Charge Details for an Islamic LC
  • 5.2.19 Maintaining Collateral Details
  • 5.2.20 Collateral Transfer from Islamic LC to Bills
  • 5.2.21 Remarks
  • 5.3 Contracts to Deposits and Accounts Details
  • 5.3.1 Linking Contracts to Deposits and Accounts
  • 5.3.2 Viewing the Amended Details of a Contract
  • 5.3.3 Viewing the Deferred Component Details
  • 5.4 Previewing Messages
  • 5.5 Viewing Different Versions of a Contract
  • 5.6 Cancelling an Islamic LC
  • 5.6.1 Procedure for Cancelling an Islamic LC
  • 5.7 Closing, Reopening, and Black listing an Islamic LC
  • 5.7.1 Closing an Islamic LC
  • 5.7.2 Reopening an Islamic LC
  • 5.7.3 Black Listing Islamic LCs
  • 5.8 Lodging Islamic Guarantee Claim
  • 5.8.1 Lodging Islamic Guarantee Claim
  • 5.8.2 Specifying Main Details
  • 5.8.3 Specifying Advise Details
  • 5.8.4 Specifying Document Details
  • 5.8.5 Remarks
  • 5.9 Viewing Islamic Guarantee Claim Details
  • 5.10 Guarantee Claim Settlement
  • 5.10.1 Settling Guarantee Claim
  • 5.10.2 Main Tab
  • 5.10.3 Advices Tab
  • 5.10.4 Viewing Guarantee Claim Settlement

    • 6. Capturing Additional Details

  • 6.1 Capturing Drafts Details
  • 6.2 Specifying Settlement Instructions
  • 6.3 Events Details
  • 6.3.1 Viewing Events Details
  • 6.3.2 Viewing the Accounting Entries Passed for the Islamic LC
  • 6.3.3 Viewing Advices Applicable to Contract
  • 6.4 Capturing MIS Details
  • 6.5 Defining Commission
  • 6.6 Defining Charge Details
  • 6.7 Specifying Tax Details
  • 6.8 Maintaining Collateral Details
  • 6.9 Linking Contracts to Deposits and Accounts
  • 6.10 Viewing Amended Details of Contract
  • 6.11 Specifying Transfer Details
  • 6.12 Capturing UDF Values
  • 6.13 Capturing Split Settlement Values
  • 6.13.1 Basis Details
  • 6.13.2 Split Details
  • 6.14 Specifying Finance Preference
  • 6.14.1 Indicating Preferences for the Profit Components
  • 6.15 Viewing Deferred Profit Component Values
  • 6.16 Utilizing Import Licenses
  • 6.17 Previewing Messages
  • 6.17.1 Viewing Message/Advice
  • 6.17.2 Printing Message/Advices
  • 6.18 Remarks
  • 6.19 Common Group Message

    • 7. Making an Availment

  • 7.1 Islamic LC Availment Input
  • 7.1.1 Invoking the Islamic LC Contract Availment Screen
  • 7.1.2 Specifying Cash Collateral Details for an Availment
  • 7.1.3 Maintaining Settlement Instructions for an Availment
  • 7.1.4 Invoking the Settlement Screens
  • 7.1.5 Capturing Account Details
  • 7.1.6 Capturing Message Details for the Availment
  • 7.1.7 Capturing Party Details
  • 7.1.8 Clearing Details Tab
  • 7.1.9 Viewing Advice Details
  • 7.1.10 Specifying Charge Details
  • 7.1.11 Specifying Commission Details
  • 7.1.12 Specifying Tax Details
  • 7.1.13 Reversal of an Availment
  • 7.1.14 Viewing Event Details
  • 7.1.15 Accounting Entries

    • 8. Amending Details of an Islamic LC

  • 8.1 Procedure for Amending an Islamic LC
  • 8.1.1 Indicating a Change of Value for a Field
  • 8.1.2 Commission and Charges for the Amendment
  • 8.1.3 Amendment of an Unauthorized Islamic LC
  • 8.2 Islamic LC Amendment Details
  • 8.2.1 Confirming Islamic LC Amendment
  • 8.2.2 Parties Tab
  • 8.2.3 Advices Tab
  • 8.2.4 Specifying Collateral Details
  • 8.2.5 Specifying Events
  • 8.2.6 Specifying Fields
  • 8.2.7 Utilizing Import Licenses
  • 8.2.8 Remarks
  • 8.2.9 Previewing Messages
  • 8.2.10 Authorizing Amendment Details
  • 8.2.11 Confirming Amended Details
  • 8.2.12 Amending details using the Contract screen
  • 8.2.13 Rejecting Amended Details
  • 8.2.14 Viewing Islamic LC Amendment Details
  • 8.3 Operations on Confirmation Record
  • 8.4 Uploading Islamic LC Amendment

    • 9. Islamic Letter of Credit Registration

  • 9.1 Islamic Letters of Credit Registration
  • 9.1.1 Islamic Letters of Credit Registration Details
  • 9.1.2 Main Tab
  • 9.1.3 Parties Tab
  • 9.1.4 Advice Button
  • 9.1.5 Viewing Islamic LC Registration Input Summary
  • 9.2 Islamic LC Amendment Registration Input

    • 10. Islamic LC Transfer

  • 10.1 Islamic LC Transfer
  • 10.1.1 Transferring Islamic LC
  • 10.1.2 Specifying the Parties Involved in the Transfer
  • 10.1.3 Specifying Goods, Shipping and Document details for an Islamic LC
  • 10.1.4 Parties Limit Tab
  • 10.1.5 Defining Charge Details
  • 10.1.6 Viewing Event Details
  • 10.1.7 Specifying Settlement Instructions
  • 10.1.8 Capturing UDF Values
  • 10.1.9 Previewing Messages
  • 10.1.10 Remarks
  • 10.1.11 Common Group Message
  • 10.1.12 Note on Transfers from Import and Export Islamic LCs
  • 10.1.13 Viewing Details of the Transfers made to the Islamic LC

    • 11. Liquidation of Receivable Components

  • 11.1 Online Receivable/Payable Details
  • 11.2 Maintaining Online Receivable/Payable Details
  • 11.2.1 Liquidating the Receivable Components of an Islamic LC
  • 11.2.2 Manual Liquidation of Receivable Components for the Islamic LC
  • 11.2.3 Specifying Details of the Advices for the Liquidation

    • 12. Credit Limit Tracking for an Islamic LC

  • 12.1 Credit Limit Tracking
  • 12.1.1 Specifying whether Limit Tracking is Required
  • 12.1.2 Indicating the Customer against Whom the Islamic LC Liability Amount is Tracked
  • 12.1.3 Specifying the Limit Tracking Tenor
  • 12.1.4 Indicating the Credit Line for Liability Amount Tracking

    • 13. Automatic Processes

  • 13.1 Maintaining Branch Parameters
  • 13.2 Invoking the Batch Process
  • 13.2.1 Automatic Events Executed During Beginning of Day (BOD)
  • 13.2.2 Automatic Liquidation of Periodic Commission
  • 13.2.3 Automatic Reinstatement of an Islamic LC
  • 13.2.4 Processes Run during End of Day (EOD)
  • 13.2.5 Automatic Closure of an Islamic LC
  • 13.2.6 Automatic Accrual of Commission
  • 13.2.7 Memo Accrual of Commission
  • 13.2.8 Accrual Control Report
  • 13.2.9 Selection Options
  • 13.2.10 Contents of the Report
  • 13.2.11 Generating Tracers
  • 13.2.12 Intra Day Accruals

    • 14. Reports

  • 14.1 Expired LCs with Outstanding Items Report
  • 14.1.1 Selection Options
  • 14.1.2 Contents of Report
  • 14.2 LCs Due to Expire Report
  • 14.2.1 Selection Options
  • 14.2.2 Contents of Report
  • 14.3 LCs Due to be Closed Report
  • 14.3.1 Selection Options
  • 14.3.2 Contents of the Report
  • 14.4 Commission Due Report
  • 14.4.1 Selection Options
  • 14.4.2 Contents of Report
  • 14.5 Commission Activity Report
  • 14.5.1 Selection Options
  • 14.5.2 Contents of Report
  • 14.6 Report on Open Ended Islamic LCs
  • 14.6.1 Contents of the Report
  • 14.7 Un-replied Tracers Report
  • 14.7.1 Contents of Report
  • 14.8 Confirmed LC Report
  • 14.8.1 Selection Options
  • 14.8.2 Contents of Report
  • 14.9 LC Overrides Report
  • 14.9.1 Selection Options
  • 14.9.2 Contents of Report
  • 14.10 Daily Activity Report
  • 14.10.1 Selection Options
  • 14.10.2 Contents of the Report
  • 14.11 Accruals Control Report
  • 14.11.1 Selection Options
  • 14.11.2 Contents of Report
  • 14.12 Commission Activity Report
  • 14.12.1 Contents of Report
  • 14.13 Process Exception Report
  • 14.13.1 Selection Options
  • 14.13.2 Contents of Report
  • 14.14 Confirmed LI Outstanding Report
  • 14.14.1 Contents of Report
  • 14.15 Expired Export Islamic Letters of Credit Report
  • 14.15.1 Contents of Report
  • 14.16 Guarantees Due for Closure Report
  • 14.16.1 Contents of Report
  • 14.17 Outstanding Guarantees Report
  • 14.17.1 Contents of Report
  • 14.18 Reimburse Bank Report
  • 14.18.1 Contents of Report
  • 14.19 Suspense Charges Account Receivable Report
  • 14.19.1 Contents of Report
  • 14.20 Transferred Islamic Letters Of Credit Report
  • 14.20.1 Contents of Report
  • 14.21 Suspense Charges Account Receivable Report
  • 14.21.1 Contents of Report

    • 15. Annexure A - Accounting Entries

  • 15.1 Islamic LC Events
  • 15.2 Amount Tags
  • 15.3 Accounting Roles
  • 15.4 Event-Accounting Entries
  • 15.4.1 BISS: Booking of an import Islamic LC
  • 15.4.2 Accounting Roles for Transfer of Charge & Commission Components from Islamic LC to BC
  • 15.4.3 Accounting Entries for Transfer of Charge & Commission Components from Islamic LC to BC
  • 15.4.4 Collateral Bridge Accounting Role
  • 15.4.5 AVAL: Availment under Islamic LC
  • 15.4.6 CLOS: Closure of an Islamic LC / Guarantee
  • 15.4.7 REIN: Reinstatement of an Islamic LC / Guarantee
  • 15.4.8 BADV: Advising an Islamic LC
  • 15.4.9 BCFM: Confirming an Islamic LC
  • 15.4.10 BPRE: Pre-advising an Islamic LC
  • 15.4.11 BANC: Advising and Confirming an Islamic LC
  • 15.4.12 AMND: Amendment
  • 15.4.13 AOCF: Amendment from Open to Open and Confirm
  • 15.4.14 APAD: Amendment from Pre-advice to Advice
  • 15.4.15 APAC: Amendment from Pre-advice to Advice and Confirm
  • 15.4.16 REVR: Reversal
  • 15.4.17 ACCR: Accrual of Commission
  • 15.4.18 CALC: Periodic Commission Calculation Date
  • 15.4.19 CLIQ: Liquidation of Commission
  • 15.4.20 ROPN: Reopening of an Islamic LC
  • 15.4.21 CANC: Cancellation of an Islamic LC
  • 15.4.22 TRGN: Generation of Tracers
  • 15.4.23 AATC: Amendment from Advice to Confirm
  • 15.4.24 RASN: Reassign an Islamic LC
  • 15.4.25 RAVL: Reversal of Availment
  • 15.4.26 MLIQ: Manual Liquidation of Islamic LC commission
  • 15.4.27 WAIV: Waiver of Components during Manual Liquidation

    • 16. Annexure B - Events and Advices

  • 16.1 Islamic LC Events
  • 16.2 Islamic LC Messages
  • 16.3 Generating Multiple Copies of the Islamic LC Instrument
  • 16.4 Generating Fax 700/707 LC Confirmation Mail Message Copy to Counterparty
  • 16.5 Islamic LC event - Messages
  • 16.5.1 BISS: Booking of an Import Islamic LC
  • 16.5.2 AVAL: Availment under Islamic LC
  • 16.5.3 CLOS: Closure of an Islamic LC/Guarantee
  • 16.5.4 REIN: Reinstatement of an Islamic LC/Guarantee
  • 16.5.5 BADV: Advising an Islamic LC
  • 16.5.6 BCFM: Confirming an Islamic LC
  • 16.5.7 BPRE: Pre-advising an Islamic LC
  • 16.5.8 BANC: Advising and Confirming an Islamic LC
  • 16.5.9 REIS: Reissue of Guarantee
  • 16.5.10 AMND: Islamic LC Amendments
  • 16.5.11 REVR: Reversal
  • 16.5.12 ACCR: Accrual of Commission
  • 16.5.13 CALC: Periodic Commission Calculation Date
  • 16.5.14 CLIQ: Liquidation of Commission
  • 16.5.15 ROPN: Reopening of an Islamic LC
  • 16.5.16 TRGN: End of Day Check for Tracers
  • 16.5.17 CANC: Cancellation of an Islamic LC
  • 16.5.18 APAC: Amendment from Pre-Advice to Advice and Confirm
  • 16.5.19 APAD: Amendment from Pre-advice to Advice
  • 16.5.20 RASN: Reassign an Islamic LC
  • 16.5.21 RAVL: Reversal of Availment
  • 16.5.22 CALC: Periodic Commission Calculation
  • 16.5.23 Advice Generated for the Insurance Company
  • 16.5.24 Advice Generated for the Counterparty

    • 17. Function ID Glossary