The product development has been completed and is in testing phase. The Product Suite consists of Import Documentary Credits, Import Collections, Export Documentary Credits, Export Non-LC bills and Guarantees.

 

Import Documentary Credits

  • Import Documentary Credits provides for the following features:
  • Issue Import Documentary Credit ╸ supports transmission of MT 700/701 as also posting financial entries into the Core Banking system.
  • Amendment of Import Documentary Credit ╸ facilitates amendments to the Documentary Credit along with Swift messages and financial entries.
  • Maintain Import Documentary Credit ╸ enables Acknowledgement, Acceptance, Closure, Cancellation as well as Revival of expired Documentary Credit.
  • Receipt of documents ╸ facilitates receiving and recording the documents from the beneficiary through the beneficiary bank and acknowledgement thereof.
  • Payment of Import documents received ╸ enables making payment to beneficiary for the value of documents received.
  • Periodical fee realizations for Documentary Credits issued for long term.
  • Amortization of income received under the Documentary Credits.

Import Collections

  • Import Collections provides for the following features:
  • Receipt of Collection documents ╸ enables receiving and recording details of collections received either from the Drawer directly or through Drawer’s bank.
  • Amendments ╸ amendment of Collections pending payment.
  • Payment ╸ for payment of proceeds to the Drawer.

Export documentary Credits:

  • Receiving notification of Documentary Credit/Amendment advise.
  • Lodge documents with Bank.
  • Request for negotiation.
  • Receive notification of realization of export proceeds.

Export collections:

  • Lodge documents with Bank.
  • Receive notification of realization of export proceeds.

Pre-shipment Finance

  • Provide pre-shipment finance to the exporter against documentary credit or purchase order.
  • Appropriate export proceeds for liquidation of pre-shipment finance by negotiation of export bills.
  • Reverse pre-shipment finance by inward remittance/cancellation.

Document Management

  • Uploading documents.
  • Storing in designated area.
  • Retrieving and viewing uploaded documents.
  • Facility to add/delete documents.
  • Documents are maintained record-wise.

Registration of Escrow Arrangement

Rule Engine Enabling Various Features

Document Upload

Payments

Open Accounts

  • Importer requests issue of Purchase Orders.
  • Bank issues Purchase Orders.
  • Exporter views Purchase Order.
  • Exporter accepts Purchase Order.
  • Bank registers bill under accepted Purchase Order and processes the same.

Supply Chain Financing

  • A Purchase Order is initiated by the Importer and sent to his banker.
  • The Bank approves the same and makes it available for viewing by Exporter.
  • The Exporter conveys his Approval.
  • Exporter ships the goods and initiates document submission to the Bank.
  • The Bank registers the same and informs the Importer.
  • Importer accepts the document and REQUESTS THE BANK to make immediate payment.
  • The Bank pays the Exporter immediately.
  • On the maturity date, the Bank recovers the Bill/Invoice value from Importer with interests and costs applicable thereon.

Avalisation, Supplier Credit and Buyer Credit

  • Import Collection registered by bank.
  • Avalisation request accepted. Similarly request for Supper/Buyer Credit accepted.
  • If necessary accepted bill is discounted by bank.
  • Payment made in due course.
  • Issue of Guarantee on behalf of the customer in favour of the beneficiary.
  • Amendment ╸ certain valid amendments can be updated and advised to beneficiary.
  • Claim ╸ lodging claim received from beneficiary and settlement thereof.
  • Suspension of Claim ╸ withholding settlement of Claims received as a result of orders received from Court of Law.
  • Closure of guarantee either on accomplishment of purpose or cancellation as requested by parties.
  • Periodical fee realizations for guarantees issued for long term.
  • Amortization of income received under the Guarantees.

 

Internet Banking front-end for bank clients

Facilitates internet banking to Bank’s customers to enable them interact with the bank faster and better in the following areas:

Import Documentary Credit

  • Requesting for issue/amendment of Import Documentary Credit
  • Receiving notification of documents received
  • Acceptance and Approval of payment
  • Receiving notification of payment
  • Requesting closure of Documentary Credit

Import Collections

  • Receiving notification of Collections received
  • Acceptance and approval of payment
  • Receiving notification of payment

Bank Guarantees

  • Requesting issue/amendment of Bank guarantee
  • Receiving notification of Claim and Settlement
  • Requesting closure of Bank Guarantee

Export documentary Credits

  • Receiving notification of Documentary Credit/Amendment advise
  • Lodge documents with Bank
  • Request for negotiation
  • Receive notification of realization of export proceeds

Export collections

  • Lodge documents with Bank.
  • Receive notification of realization of export proceeds.

Pre-shipment Finance

  • Request pre-shipment advance
  • View reversal of advance

December 2020

Workflow management

  • A flexible workflow and queuing system for all Trade Finance transactions which enables routing transactions between Maker, Verifier and Approver. The transaction can be assigned to specific individual users or user groups.
  • Notifying assigned users through email.
  • Time-stamping, defining SLAs and monitoring efficiency as well as delays through effective Reporting system.

June 2021

Factoring

  • Process invoices received for realization.
  • Negotiation and according credits to beneficiary.
  • Appropriation of payments received.
  • Status reports.

December 2021

Blockchain

It is increasingly felt that there are accruing real benefits of using blockchain in reducing the costs of managing trade finance through automated processes. By reducing the amount of manual processing involved in trade finance and minimising the costly use of paper instruments, digital technologies can provide real cost savings to banks both in trade finance and in other areas such as payments or cash management.

Blockchain technology can be utilized to

  • Build electronic sales ledgers or  contracts
  • Identify the location of goods to be monitored
  • Facilitate payments in close to real time, and
  • The related business transactions can be executed directly on the platform itself through the use of "smart contracts" embedded in the platform and the platform could be further connected to Bank’s payment systems and distribution networks for smoother flow of payments, goods and services.

Against this backdrop, FINTRA is committed to enhance and weave its Software to achieve the above-mentioned objectives. We are actively pursuing this new opportunity and will keep ourselves abreast of the current developments. The related software development will be taken up concurrently to achieve the desired goals.