2.2.2 Business Scenario

Scenario 1 - Credit Compliant Doc Submission

Issuing bank received Documents from Negotiating bank, and scrutinizes the docs. If the docs are Credit Compliant, Send MT740 during while booking the Bill to the Reimbursing Bank (If the Payment is routed through reimbursing Bank) & Mark Bills as Credit Compliant.

If required to inform about the acceptance Issuing bank will send MT799 (Free Format - Acceptance Message) to the Negotiating bank.

On Maturity Issuing bank Debit the Customer & credit the Nostro for the Bill Amount.

MT756 has to be generated to the Negotiating bank or Reimbursing Bank (If Payment is routed thru reimbursing bank).

Scenario 2 - Discrepant Doc Submission and Acceptance by Importer

Issuing bank received Documents from Negotiating bank, along with MT 754 and scrutinizes the docs. If Issuing bank find discrepancy the same will be informed to the importer, if the importer is ok with the discrepancy, Issuing bank will send MT732 (Informing the Negotiating bank that docs are taken up with discrepancies).

On receipt of MT732 Negotiating bank will inform the same to exporter.

Issuing bank will send MT740 during while booking the Bill to the Reimbursing Bank (If the Payment is routed through reimbursing Bank).

If required to inform about the acceptance Issuing bank will send MT799 (Free Format - Acceptance Message) to the Negotiating bank.

On Maturity Issuing bank Debit the Customer & credit the Nostro for the Bill Amount.

MT756 has to be generated to the Negotiating bank or Reimbursing Bank (If Payment is routed thru reimbursing bank).

Scenario 3 - Discrepant Doc Submission and Refusal by Importer

Issuing bank received Documents from Negotiating bank, along with MT 754 and scrutinizes the docs. If Issuing bank find discrepancy the same will be informed to the importer, if the importer is not ok with the discrepancy, Issuing bank will send MT734 (Informing the Negotiating bank that docs are refused to accept by the importer).

On receipt of MT734, Negotiating bank will inform the same to the exporter. If the exporter submits all the documents with Credit Compliant, the same will be scrutinized by the Negotiating bank send to issuing bank.

Upon receipt of documents issuing bank will scrutinize the docs, if documents are Credit Compliant, sends MT740 to the Reimbursing Bank (If the Payment is routed through reimbursing Bank) & will send MT732 to the Negotiating Bank (Informing that docs are taken up).

On Maturity Issuing bank Debit the Customer & credit the Nostro for the Bill Amount.

MT756 has to be generated to the Negotiating bank or Reimbursing Bank (If Payment is routed thru reimbursing bank).

Scenario 4 – Prior to Doc Submission request for acceptance from Importer

Issuing bank received MT 750(Discrepancy Request) from Negotiating bank. The same will be informed to the importer, if the importer is ok with the discrepancy, Issuing bank will send MT752 (Informing the Negotiating bank that importer is ok with discrepancies).

On receipt of MT752, Negotiating bank mark the discrepancies are sorted out and will send MT754 along with the Documents to Issuing Bank.

Upon receipt of MT 754 & Documents, Issuing bank will scrutinize the docs, if documents are Credit Compliant, sends MT740 to the Reimbursing Bank (If the Payment is routed through reimbursing Bank) & will send MT732 to the Negotiating Bank (Informing that docs are taken up).

On Maturity Issuing bank Debit the Customer & credit the Nostro for the Bill Amount.

MT756 has to be generated to the Negotiating bank or Reimbursing Bank (If Payment is routed thru reimbursing bank).

Scenario 5 – Prior to Doc Submission Refusal by Importer.

Issuing bank received MT 750(Discrepancy Request) from Negotiating bank. The same will be informed to the importer, if the importer is not ok with the discrepancy, Issuing bank will send MT796 (Informing the Negotiating bank that importer is not ok with discrepancies).

On receipt of MT796, Negotiating bank will inform the same to the exporter. If the exporter submits all the documents with Credit Compliant, the same will be scrutinized by the Negotiating bank and MT754 will send to issuing bank with Documents.

If Issuing bank find discrepancy the same will be informed to the importer, if the importer is not ok with the discrepancy, Issuing bank will send MT734 (Informing the Negotiating bank that docs are refused to accept by the importer).

On receipt of MT734, Negotiating bank will inform the same to the exporter. If the exporter submits all the documents with Credit Compliant, the same will be scrutinized by the Negotiating bank send to issuing bank.

Upon receipt of documents issuing bank will scrutinize the docs, if documents are Credit Compliant, sends MT740 to the Reimbursing Bank (If the Payment is routed through reimbursing Bank) & will send MT732 to the Negotiating Bank (Informing that docs are taken up).

On Maturity Issuing bank Debit the Customer & credit the Nostro for the Bill Amount.

MT756 has to be generated to the Negotiating bank or Reimbursing Bank (If Payment is routed thru reimbursing bank).

Scenario 6 – Advance Request from the Importer.

On Maturity if the importer requests for bill Advance, Issuing bank can provide advance to the customer using the change of operation Acceptance to Advance.

During Advance Issuing bank debit the Bill Advanced GL and credit the nostro account. During realization Issuing bank will debit the customer account for advanced amount and interest and credit the respective bill advanced and income GLs.