2.5.2 Business Scenario

IPCL - Incoming Clean Sight Bills under LC on Payment

Scenario 1 - Credit Compliant Doc Submission

IUCL – Incoming Clean Usance Bills under LC on Acceptance (Advance by Loan)

Scenario 1 - Credit Compliant Doc Submission

IUCM - Incoming Clean Multi Tenor Bills under LC on Acceptance (Advance by Loan)

Issuing bank received MT754 and Documents from Negotiating bank, and scrutinizes the docs. If the docs are Credit Compliant, Mark Bills as Credit Compliant and informed to importer.

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

During Liquidation Issuing bank will create a new loan contract and credit the Nostro for bill amount. MT756 has to be generated to the Negotiating 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.

Issuing bank received MT754 and Documents from Negotiating bank, and scrutinizes the docs. If the docs are Credit Compliant, Mark Bills as Credit Compliant and informed to importer.

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

During Liquidation Issuing bank will create a new loan contract and credit the Nostro for bill amount. MT756 has to be generated to the Negotiating 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.

Issuing bank received MT754 and Documents from Negotiating bank, and scrutinizes the docs. If the docs are Credit Compliant, Mark Bills as Credit Compliant and informed to importer.

On Maturity if the importer pays the exporter for all the tenors.