Business Scenario

Scenario 1 - Doc Submission on collection

Collecting bank will send MT410 Acknowledgement Message to Remitting bank upon receipt of Documents from Remitting bank, and the same will be informed to importer.

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

Non Acceptance

If importer finds the docs are discrepant, Importer will inform the same to collecting bank, collecting bank will send MT416 Non Acceptance Message to remitting bank. The same will be informed to the exporter thru remitting bank.

Again if the exporter submits the docs, the same will be forwarded to the Collecting bank.

Protest

If exporter finds docs are Credit Compliant, and request the remitting bank to protest the bill, for the same protest advice will sent to the collecting bank, upon receipt of protest advice collecting bank protest the bill and protest advice will sent to the importer.

Payment

If the docs are Credit Compliant, and importer made payment to the collecting bank on maturity, the same will be remitted to remitting bank, and payment message MT400 will sent to remitting bank. Upon Receipt of MT400 Remitting bank will debit the nostro account and credit the customer’s settlement account.

Tracers

After maturity if the payment is not effected by the importer, remitting bank will send the payment tracer MT420 to the collecting bank for remaining the payment. The same will be informed to the importer and collecting bank will send MT422 Fate message to the remitting bank.