International Imports Finance Services Benefits - Trade Finance Services Benefits

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Letter of Credit

Parties to Letter of Credit:

Applicant: the party which arranges for issuance of the LC (the importer)
Beneficiary: the party in whose favor the LC is issued (the exporter)
Issuing Bank: applicant's bank that opens, issues or establishes the LC
Advising Bank: the bank that authenticates and advices the issuance of the LC to the beneficiary
Negotiating / Nominated Bank: usually exporter bank, transfer funds to exporter and also at its discretion to advance funds to the beneficiary against confirmed documents
Confirming Bank: By adding Confirmation, the confirming bank adds its guarantee to the undertaking given by the Issuing Bank. Confirming Bank takes the risk on Issuing Bank and the country of the Issuing Bank.
Advising an Export LC / Amendment: The basic responsibility of an Advising Bank is to advise the LC received from the Issuing Bank only after checking the apparent authenticity of the credit and to inform the exporter on the arrival of LC in his favour once the LC is ready for collection.
Confirmation of Exports LCs: the bank that adds its irrevocable commitment to the exporter against the LC
Negotiation of Export LCs: LC Issuing Bank nominates a Negotiating Bank, or Unrestricted for Negotiation (freely negotiable) The Exporter may require funds before due date, and approaches the Negotiating Bank Hence, the Negotiating Bank takes the credit risk on the Issuing Bank or Confirming Bank, if the LC is confirmed. Issuing Bank may refuse the payment, in case, if the discrepancies are discovered. Hence, the Negotiating Bank bears the documents risk too.
Reimbursement of Export LCs: Issuing Bank may nominate a Bank allowing the Negotiating Bank to collect the money from the Reimbursing Bank. Reimbursing Bank does not involve in checking of any LC documents

Bills & Collection

Ourknowledgeable and experienced trade finance team is available to guide and advice you on documentation and transactions to ensure:

Quick turnaround times
Faster payments
Cost effectiveness
Better reach
Excellent trade support
Arrangement of credit reports of overseas parties
Specialised advice on international trade-related issues as well as technical issues

Our global network of correspondent banks further enables us to handle large volume collection portfolios, with world-class facilities for handling collections related to international trade.

Outward Remittances

Our services in the area of outward remittances include:

Payment of direct Import Bills: Processing and remittances for Import Bills received directly by importers in India
Advance payment towards imports: Processing and remittances towards advance payment for imports
Other outward remittances: Such as dividend payouts, ECB payments, royalty, shipping etc.

Bank Guarantee (BG)

We offer a wide spectrum of guarantees that address varying client requirements and risk profiles. These include performance and financial guarantees, bid bonds, tender and customs guarantees, etc.

A Financial BG is a contractual obligation that triggers the payment under the guarantee, is a financial one e.g. Guarantee of a loan/Dividend/Interest/Insurance payments, Lease payments, etc.
A Performance BG is a contractual obligation that triggers the payment under the guarantee, is related to non-performance of an act e.g. Bid/Performance/Advance payment bonds.

Buyers Credit (BC)

Credit facility extended by the AD to importer to meet his working capital needs
Financing exceeding USD 20 mio per import transaction requires prior approval from the RBI Can be offered to finance import of capital goods for a tenor of upto 3 years & non-capital goods for a tenor of upto 1 year from the date of shipment

You are never too far away from quick, efficient banking services. Locate your nearest branch or an ATM.

For assistance, call us at 1800 209 5600 from Monday to Saturday (9:30 am to 6:30 pm, excluding holidays)

Your opinion is important to us. We'll check how we can use it to improve our services

You are never too far away from quick, efficient banking services. Locate your nearest branch or an ATM.

For assistance, call us at 1800 209 5600 from Monday to Saturday (9:30 am to 6:30 pm, excluding holidays)

Your opinion is important to us. We'll check how we can use it to improve our services

International Imports

Letter of Credit

Bills & Collection

Outward Remittances

Bank Guarantee (BG)

Buyers Credit (BC)

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