2.1.2 Business Scenario
Scenario 1 - Documents Submission on collection Basis
On request of Exporter Remitting bank book the bill on collection basis, for the same acknowledgment advice will be generated to the drawer and the remitting bank send the documents along with remittance letter to Collecting Bank.
On receipt of MT410 Acknowledgement Message from collecting bank, the same will be informed to the drawer.
On Maturity upon receipt of MT400 (Advice of Payment) from Collecting bank, for the bill amount the Nostro account will be debited and credited to the customer account.
If on maturity payment is not made by importer, remitting bank will send MT420 (Tracers for Payment) to collecting bank for remaining about the payment, the same will be informed to the drawee.
Scenario 2 - Documents Submission on collection Basis – Request for Purchase
On request of Exporter Remitting bank book the bill on collection basis, for the same acknowledgment advice will be generated to the drawer and the remitting bank send the documents along with remittance letter to Collecting Bank.
On receipt of MT410 Acknowledgement Message from collecting bank, the same will be informed to the drawer.
If the exporter requested for purchase of the bill, bank will Scrutiny the docs and purchase the bill with recourse.
During purchase bank will Debit the bills purchased GL and credit the Customer Account.
On Maturity upon receipt of MT400 (Advice of Payment) from Collecting bank, for the bill amount the Nostro account will be debited and credited to the purchased GL.
Parent topic: Product Code – ESNC/ESCC/ESNM