2.2.2 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.
If MT412 (Acceptance Advice) not Received from Collecting Bank, remitting bank will send MT420 (Tracers for Acceptance) to collecting bank for remaining about the Acceptance, the same will be informed to the drawee.
Upon Receipt of MT412, the same will be informed to 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 Discount.
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 MT412 (Acceptance Advice) not Received from Collecting Bank, remitting bank will send MT420 (Tracers for Acceptance) to collecting bank for remaining about the Acceptance, the same will be informed to the drawee.
Upon Receipt of MT412, the same will be informed to drawer.
If the exporter requested for discount the bill, bank will Scrutiny the docs and discount the bill with recourse.
During discount bank will Debit the bills discounted 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 discounted GL.
Scenario 3 – Export Forfeiting (Without Recourse After Bill Acceptance)
After Acceptance if the exporter request the remitting bank for Forfeiting, the remitting bank will send the documents to forfeiter, the same will intimated to the collecting 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 remitting bank will debit the nostro and credit the customer Account.
Scenario 4 – Export Forfeiting (Without Recourse After Bill Discounting
After Discount if the exporter request the Remitting bank for Forfeiting, the remitting bank will send the documents to forfeiter, the same will intimated to the collecting 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 remitting bank will debit the nostro and credit the bill discounted GL.
Parent topic: Product Code - EUNA/EAUC/EUNM