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.

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.

Acceptance

Payment

Tracers

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

On Maturity if the importer requests for Loan, Collecting bank can provide Loan to the customer.

During Liquidation Collecting bank will create a new loan contract and credit the Nostro for bill amount. MT400 has to be generated to the Remitting Bank.

During Liquidation of Loan Issuing bank will debit the customer account for loan amount and interest and credit the respective Loan Asset and income GLs.

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.

Products IUNL and IUNM

Scenario 1 - Doc Submission on Collection

Non Acceptance

Protest for Non Acceptance

Acceptance

Payment

Tracers

Protest for Non Payment

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 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.

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.

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.

On Maturity if the importer requests for Loan, Collecting bank can provide Loan to the customer.

During Liquidation Collecting bank will create a new loan contract and credit the Nostro for bill amount. MT400 has to be generated to the Remitting Bank.

During Liquidation of Loan Issuing bank will debit the customer account for loan amount and interest and credit the respective Loan Asset and income GLs.

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.