2.2.2 Business Scenario

Scenario 1 - Credit Compliant Doc Submission

Negotiating bank received Documents from Beneficiary, and scrutinizes the docs. If the docs are Credit Compliant, Mark Bills as Credit Compliant and send MT754 and Docs to the Issuing Bank. Send MT742 before ‘n’ Maturity days to the Reimbursing Bank (If the Payment is routed through reimbursing Bank) on receipt of MT756 from reimbursing bank/Issuing Bank Debit the Nostro for the Bill Amount & credit the Customer.

Scenario 2 - Discrepancy Notice and Request for Acceptance by Importer.

Negotiating bank received Documents from Beneficiary, and Scrutiny the docs. If the docs are with discrepancy, Mark bill as Discrepant and send MT750 discrepancy advice to Issuing bank. If issuing bank refuses to accept the doc and send MT796, on receipt of MT796 the exporter is informed for the same.

On the later date if the discrepancies are resolved & on receipt of MT752 mark Discrepancies are resolved and send MT754 along with Docs.

On receipt of MT756 from Reimbursing bank/Issuing Bank Debit the Nostro for the Bill Amount & credit the Customer

Scenario 3 – Discount Request from the exporter.

Negotiating bank received Documents from Beneficiary, and scrutinizes the docs. If the docs are Credit Compliant, Mark Bills as Credit Compliant and send MT754 and Docs to the Issuing Bank.

On receipt of acceptance advice from issuing bank (MT 799). Negotiating Bank proceed with discount to the exporter. On maturity upon receipt of MT756 from reimbursing bank/Issuing Bank Debit the Nostro for the Bill Amount & credit the Bill Discount.

Scenario 4 – Protest for Non - Acceptance.

Negotiating bank received Documents from Beneficiary, and scrutinizes the docs. If the docs are Credit Compliant, Mark Bills as Credit Compliant and send MT754 and Docs to the Issuing Bank. If the Negotiating bank receives MT734 from issuing bank, Due to Importer finds Discrepancy. The same will be advised to exporter thru Advising/ Negotiating bank. If the exporter finds all the documents are perfect then Exporter Requests the Advising / Negotiating bank to protest the bill, For the Same Protest Advice will generate and Sent to the issuing Bank.

Scenario 5 – Export Forfeiting (Without Recourse after Bill Acceptance).

After Acceptance if the exporter request the Negotiating bank for Forfeiting, the Negotiating bank will send the documents to forfeiter, the same will intimated to the issuing bank.

The forfeiter requests for confirming the acceptance, upon receipt of acceptance confirmation, the forfeiter will pay for the bill. On receipt of payment from forfeiter the Negotiating bank will debit the Nostro and credit the customer Account.