2.6.2 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.

Negotiating bank will negotiate the bill and Debit the Bills Negotiated Credit the Loan Account.

Send MT742 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 Bills Negotiated.

Scenario 2 - Discrepancy Notice and Sending Docs on Approval basis.

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 and mark the bill under Reserve.

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

Negotiating bank will negotiate the bill and Debit the Bills Negotiated Credit the Loan Account.

Send MT742 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 Bills Negotiated.