2.1.2 Business Scenario

Scenario 1 - Credit Compliant Doc Submission

Negotiating bank received Documents from Beneficiary, and scrutinizes the docs. If the docs are Credit Compliant, Send MT742 during while booking the Bill (Sight) to the Reimbursing Bank (If the Payment is routed through reimbursing Bank) & Mark Bills as Credit Compliant and send MT754 and Docs to the Issuing Bank.

On receipt of MT756 from Reimbursing bank/Issuing Bank Debit the Nostro for the Bill Amount & credit the Customer.

Scenario 2 - Discrepancy Notice and Request for Acceptance by Importer

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. On receipt of MT752 mark Discrepancies are resolved and send MT754 along with Docs.

On receipt of MT756 from Reimbursing bank/Issuing Bank Debit the Nostro for the Bill Amount & credit the Customer.

Scenario 3 – Protest for Non - Payment

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.

On Maturity If the Negotiating bank is not received MT756, after Maturity ‘n’ Number of tracers sent to Issuing bank and request for payment. But if the importer does not pay the bill, the same will be advised to exporter thru Advising/ Negotiating bank. If the exporter Requests the Advising / Negotiating bank to protest the bill for nonpayment, For the Same Protest Advice will generate and Sent to the issuing Bank.