2.2.2 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.

Protest for 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.

Acceptance

If importer finds the docs are Credit Compliant, Importer will inform the same to collecting bank, collecting bank will send MT412 Acceptance Message to remitting bank. The same will be informed to the exporter thru remitting bank.

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.

Protest for Non Payment

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.

Remitting bank will inform the same to the exporter. Remitting bank will protest the bill for non payment upon request of exporter, 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.

Scenario 2 - Discount Request from the Importer (Acceptance to Discount)

Acceptance

Discount

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.

If importer finds the docs are Credit Compliant, Importer will inform the same to collecting bank, collecting bank will send MT412 Acceptance Message to remitting bank. The same will be informed to the exporter thru remitting bank.

After Acceptance if the importer requests for Bill Discount, Collecting bank can provide Discount to the customer. During Discount Collecting bank debit the Bill Discounted GL and credit the nostro account.

Collecting bank will send MT400 will to remitting bank. Upon Receipt of MT400 Remitting bank will debit the nostro account and credit the customer’s settlement account.

During realization collecting bank will debit the customer account for discounted amount and interest and credit the respective bill discounted and income GLs.