2.4.2 Business Scenario

Scenario 1 – 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 Negotiating Bank.

Negotiating Bank proceed with discount to the exporter.

Negotiating Bank. Send MT742 before ‘n’ Maturity days to the Reimbursing Bank (If the Payment is routed through reimbursing Bank)

On maturity upon receipt of MT756 from reimbursing bank/Issuing Bank Debit the Nostro for the Bill Amount & credit the Bill Discount.

Scenario 2 – Export Forfeiting (Without Recourse after Bill Discounting).

After Discount 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 bill discounted GL.