retail+banking+forex.ii (1)

8/10/2019 Retail+Banking+Forex.II (1)

1/36

RETAIL BANKING 1

RETAIL BANKING FOREX-

II WHAT IS COLLECTION:

According to Article #:2(a o! "ni!or R$le%!or &ollection ("R& #:'22

collection ean% )andling o! collection

doc$ent% *+ *an,% according to t)e

in%tr$ction% recei-ed !ro t)e rincial.


2/36


3/36

RETAIL BANKING /

FINANCIAL DOCUMENTS:

It re!er to *ill% o! e0c)ange roi%%or+ note%

c)e$e% or ot)er %iilar in%tr$ent% $%ed !or

o*taining t)e a+ent.


4/36

RETAIL BANKING

COMMERCIAL

DOCUMENTS

T)e+ incl$de in-oice% tran%ort doc$ent%

doc$ent% to title to good% ( B3L Tr$c,

Receit Rail4a+ receit etc or an+ ot)er

doc$ent% not *eing !inancial doc$ent%.


5/36

RETAIL BANKING '

TYPES OF COLLECTION

T)e collection I% categori5ed into 6

1- Clean Collection

2- Documentary Collection.


6/36

RETAIL BANKING 7

CLEAN COLLECTION

"nder article 11:2(c) o! "R& '22 it i% de!ined

a% collection o! !inancial doc$ent% not

accoanied *+ t)e coercial doc$ent%.


7/36

RETAIL BANKING 8

DOCUMENTARYCOLLECTION

T)e article a1:2(d o! "R& '22 ean%

collection o! F9INAN&IAL doc$ent%

accompanied by commercial documents

or collection o! coercial doc$ent% not

accompanied by financial documents.


8/36

RETAIL BANKING

PARTIES INVOLVED

E0orter 3 ;rincial:


9/36

RETAIL BANKING ?

DOCUMENTS USED ININTERNATIONAL TRADE

AI WA% "ILL It i% a con%ignent note $%ed !or t)e carriage o! goad% *+ air. It

I% o!ten called an air con%ignent note. It I% not a doc$ent o!

title or tran%!era*le or negotia*le in%tr$ent. Till% doc$enttra-el% 4it) cargo and It I% not o%%i*le to $%e It a% a negotia*le!or ti& a% t)e cargo arri-e% at de%tination earlier to t)edoc$ent% -ia *an,ing %+%te t)ere *+ allo4ing t)e con%igneeto ta,e t)e deli-er+ o! t)e good%.

Toda+ an+ a@or 4orld airline% )a-e a !$ll+ co$teri5ed air!reig)t doc$entation %+%te t)e+ )a-e al%o e0tended *arcode% !or a$toatic -erl!lcatlon.


10/36

RETAIL BANKING 1

DOCUMENTS USED ININTERNATIONAL TRADE "ILL O& E'CHAN(E A% er *ill o! e0c)ange Act 12 de!inition *ill o!

E0c)ange i% an $nconditional order in 4ritingaddre%%ed to one er%on to anot)er d$l+ %ignedand re$e%ting t)e er%on to 4)o it i% addre%%edto a+ on deand or at a !i0ed deterina*le !$t$retie a certain %$ o! one+ to or to t)e order o! a*earer.

T)e Bill o! e0c)ange a+ *e o! t4o t+e%:alg)t

*"%ance


11/36

RETAIL BANKING 11


"ILL O& LA)IN(: A *ill o! lading I% a receit !or good% %)ied on *oard a -e%%el

%igned *+ t)e er%on or )i% agent 4)o contract to carr+ t)e and

%tating t)e condition% In 4)ic) t)e good% 4ere deli-ered to andrecei-ed *+ t)e %)i. It I% a doc$ent o! title to good%. It I% $%edto control deli-er+ o! good% tran%orted *+ %ea.

T)ere are %e-eral t+e% o! *ill o! lading %$c) a%: )ied *ill o! lading Recei-ed *ill o! lading &lean *ill o!

lading &a$%ed *ill o! lading container *ill o! lading c)arter art+ *ill o! lading and etc.


12/36

RETAIL BANKING 12

DOCUMENTS USED IN

INTERNATIONAL TRADE

CO**ECIAL IN+OICE

It gi-e% t)e detail% o! t)e good% $nit rice

ter% o! a+ent etc and i% i%%$ed *+ t)e

%eller.


13/36

RETAIL BANKING 1/


$AC,IN( LIST:

It i% a andator+ doc$ent re$ired *+ t)e

c$%to% and *an, a$t)oritie%. It gi-e% detail%

o! t)e in-oicing *$+er con%ignee co$ntr+ o!

origin 4eig)t or -ol$e o! good% incl$ding

ac,ing in!oration.


14/36

RETAIL BANKING 1

MECHANISM OFCOLLECTION

A!ter e0ec$tion o! %ale contract *et4een t)e

*$+er and %eller t)e %eller %)i=% t)e good%

in accordance 4it) t)e terms and condition%agreed *et4een *$+er and %eller.


15/36

RETAIL BANKING 1'

MECHANISM OFCOLLECTION T)e %eller 3 e0orter 3 dra4er %end% t)e

!inancial doc$ent% ie Bill o! e0c)ange along

4it) ot)er coercial a% 4ell a% %)iing

doc$ent% to t)e *$+er 3 iorter 3dra4eeeit)er directl+ or t)ro$g) a *an,ing c)annel

!or collection o! roceed% o! e0orted good%

t)eir again%t 4it) certain collectionIn%tr$ction% 1.e deli-er t)e good% again%t

a+ent or accetance.


16/36

RETAIL BANKING 17

MECHANISM OFCOLLECTION T)e reitting *an, 4ill )o4e-er 4ill c)ec, t)e

doc$ent% aarentl+ to en%$re t)at t)e doc$ent%

entioned in )i% letter )a% *een recei-ed d$ll+

endor%ed in it% !a-o$r 4)ere nece%%ar+.

T)e reitting *an, t)en 4ill enter t)e doc$ent%

into FOREIGN BILL ENT ON &OLLE&TION

REGITER and 4ill allot t)e r$nning %erial n$*er4)ic) %)o$ld al%o *e ar,ed on eac) doc$ent

recei-ed !or collection.


17/36

RETAIL BANKING 18

PROFORMA ENTRY

T)en t)e Ban, a%%e% t)e !ollo4ing entr+

regarding %$c) collection in it% *oo,%:

>r: Bill% !or &ollection Acco$nt

&r: Bill% lodged Acco$nt


18/36

RETAIL BANKING 1

MECHANISM OFCOLLECTION: T)erea!ter reitting *an, 4ill !or4ard t)e

doc$ent% to t)e &OLLE&TION BANK $nderit% co-ering %c)ed$le called "COLLECTION

INSTRUCTIONS' in t)e lig)t of detailedin%tr$ction% gi-en *+ t)e rincial 3 %eller3e0orter at t)e tie o! %$*i%%ion o!doc$ent% a% to )o4 t)e *an, (reitting

*an, %)o$ld )andle !$t$re e-ent%. Ban,% arere$ired to !ollo4 t)e%e in%tr$ction%etic$lo$%l+.


19/36

RETAIL BANKING 1?

MECHANISM OFCOLLECTION T)e Coection Instr!ction $%t *e colete and

reci%e and %)o$ld indicate t)at t)e collection i%%$*@ect to "R& '22.Ban,% are onl+ eritted to act$on t)e In%tr$ction% gi-en in %$c) &ollection

In%tr$ction and in accordance 4it) t)e%e R$le%.

It %)o$ld *e noted t)at i! collection% accoan+ingt)e Coection Instr!ction recei-ed *+ t)e collecting*an, directl+ !ro rincial . $c) collection% e-en

t)o$g) t)e+ a+ contain a %tateent t)at it i%%$*@ect to "R& '22 do not coe $nder "ni!orR$le% !or &ollection% *eca$%e t)e+ are not ro$tedt)ro$g) *an,%.


20/36

RETAIL BANKING 2

Collection Instruction

1. >etail% o! t)e rincial3e0orter and o! reitting *an,. 2 detail% of dra4ee 3 Iorter incl$ding )i% colete addre%% at #ic# t)e

doc$ent% )a-e to *e re%ented. /.>etail% or re%enting *an, i! an+. . Ao$nt and c$rrenc+ to *e collected. S$ Li%t of t)e doc$ent% enclo%ed and n$erical co$ntof eac) doc$ent *. Code o! deli-er+ o! doc$ent% i.e again%t a+ent or on accetance. 8. Action to *e ta,en in t)e e-ent o! di%)ono$r D *ill to *e noted and rote%ted

good% to *e cleared %tored and in%$red. %$ Code of reittance o!roceed% i$e 4)et)er *+ air ail or*+ ca*le. ?. Intere%t to *e collected i! alica*le indicating 4)et)er it a+ *e 4ai-ed or

not i! re!$%ed *+ t)e dra4ee. (a rate o! intere%t (* intere%t eriod *a%i% o!calc$lation !or e0ale /7 or /7' da+% in a +ear a% a alica*le.

In t r earancd (c * el *a%i% o! calc$lation !or e0ale-b- or -/ da+% )et)er c)arge% H e0en%e% are to *e collected or ded$cted indicating 4)et)er

t)e+ ma& *e 4ai-ed or not i! ref!sed*+ t)e dra4ee. 11. In%tr$ction% in ca%e o! nonD a+ent nonDaccetance and or non

coliance 4it) ot)er in%tr$ction%.


21/36

RETAIL BANKING 21

COLLECTION STEP BYSTEP

STEP # 1:

E0orter H Iorter e0ec$te% %ale contract.

STEP #:2

T)e E0orter an$!act$re t)e good% a% er %ale%contract and %)i it to t)e iorter=% co$ntr+.

STEP #:3:

T)e E0orter %$*it )i% Bill o! e0c)ange !inancial

doc$ent% along 4it) coercial H tran%ort

doc$ent% to reitting *an, 4it) t)e re$e%t to

collect t)e roceed% t)eir again%t !ro dra4ee.


22/36

RETAIL BANKING 22


STEP # 4: T)e reitting Ban, !or4ard% t)e doc$ent% a% er in%tr$ction% o!

It% rincial !or collection o! roceed% !ro dra4ee t)ro$g) It%*ranc) or corre%ondent *an, called &ollecting Ban, In t)eco$ntr+ o! iorter 3dra4ee $nder co-er o! &ollectionIn%tr$ction%

STEP # 5: T)e collecting *an, i! it i% not t)e re%enting *an, 4ill !or4ard t)e

doc$ent% to t)e re%enting *an, !or re%entation o! doc$ent%to t)e IorterJ dra4ee !or a+ent or accetance a% t)e ca%ea+ *e


23/36

RETAIL BANKING 2/


STEP # 6: T)e Iorter In ca%e o! %ig)t *ill a+% t)e ao$nt o!

*ill or In ca%e o! $%ance *ill )e accet% it !ora+ent on a !$t$re deterina*le date.

STEP # 7: T)e collecting I re%enting *an, re%ent t)e

acceted *ill !or a+ent to t)e dra4ee 3 accetor!or a+ent on it% d$e date.

STEP # : T)e collecting *an, 4ill reit t)e roceed% to t)e

reitting *an, a% er it% a+ent In%tr$ction%.


24/36

RETAIL BANKING 2


STEP # ! T)e reitting *an, 4ill credit t)e roceed% Into t)e acco$nt o! It%

rincial *+ re-er%ing collection entr+ a%%ed at t)e tie o!collection.

1 >r: Bill Lodged Acco$nt

&r: Bill !or &ollection Acco$nt

2 >r: FET


25/36

RETAIL BANKING 2'

RESPONSIBILITY OF

REMITTING / COLLECTING

BANK Article 0: re!ardin! $resentation:

T)e collecting 3;re%enting *an, i%

re%on%i*le to re%ent t)e doc$ent%

recei-ed $nder

collection iediatel+ a!ter t)eir receit to

t)e dra4ee !or a+ent i! t)e doc$ent% area+a*le at %ig)t.


26/36

RETAIL BANKING 27

RESPONSIBILITY OF

REMITTING/ COLLECTING

BANK In ca%e i! t)e doc$ent% a+a*le at a tenor

ot)er t)an %ig)t it $%t re%ent t)e

doc$ent% i.e Bill o! E0c)ange !oraccetance to t)e dra4ee 4it)o$t an+ dela+

and re%ent it !or a+ent on at$rit+ date

!or a+ent.


27/36

RETAIL BANKING 28

RESPONSIBILITY OF


BANK

Article : regarding t)e relea%e o! doc$ent%: T)e &ollection In%tr$ction% %)o$ld clearl+ %tate4)et)er t)e coercial doc$ent% are to *erelea%ed to t)e dra4n again%t accetance (>TA or

again%t a+ent (>I;.

In t)e a*%ence o! %$c) %tateent or In%tr$ction% t)ecollecting *an, 4ill relea%e t)e doc$ent% onl+

again%t a+ent to t)e dra4ee and it 4ill not *e )eldre%on%i*le !or an+ con%e$ence% ari%ing o$t o! an+dela+ in deli-ering t)e doc$ent%.


28/36

RETAIL BANKING 2

RESPONSIBILITY OF


BANK

Article #:8 re!ardin! t"e release o

documents

I! t)e !inancial doc$ent i.e Bill o! E0c)ange

re%ented along 4it) ot)er doc$ent% i% a

$%ance *ill and t)e &ollection In%tr$ction

indicate% t)at t)e coercial doc$ent% areto *e relea%ed again%t a+ent doc$ent%

4ill onl+ *e relea%ed again%t a+ent.


29/36

RETAIL BANKING 2?

RESPONSIBILITY OF

REMITTING / COLLECTING

BANK Article #:17 regarding payment:

It i% t)e re%on%i*ilit+ o! t)e collecting *an, to

reit t)e roceed% o! t)e *ill recei-ed !ro

t)e dra4ee again%t t)e collection doc$ent%

le%% c)arge% or di%*$r%eent or an+ ot1er

e2penses3 4)ere alica*le to t)e reitting*an, a% er &ollection In%tr$ction.


30/36

RETAIL BANKING /

RESPONSIBILITY OF


BANK Article 0:456a7 re!ardin! partial payments: Clean Collection: In case of clean collection

artial a+ent% a+ *e acceted to t)e

condition on 4)ic) artial a+ent% area$t)ori5ed *+ t)e la4 In force in t#e lace of

a+ent )o4e-er t)e !inancial doc$ent%

onl+ *e deli-ered 3relea%ed to t)e dra4ee on!$ll a+ent t)ereo!.


31/36

RETAIL BANKING /1

RESPONSIBILITY OFREMITTING/ COLLECTING

BANK $rticle #:1!%&' re(ar)in( *artial *ayments: Documentary Collection: In ca%e o!

doc$entar+ collection artial a+ent% 4ill

onl+ *e acceted i! %eci!icall+ a$t)ori5ed incollection in%tr$ction.


32/36

RETAIL BANKING /2

RESPONSIBILITY OF


BANK

Article 8:98 re!ardin! notin! H protestin!: T)e collection in%tr$ction %)o$ld clearl+ gi-e %eci!ic

In%tr$ction% regarding rote%ting o! *ill ( or ot)erlegal roce%% In lie t)ereo! in t)e e-ent o! nonDa+ent or nonDaccetance.

In t#e asence of %$c) clear In%tr$ction% t#ecollecting *an, )a-e no o*ligation to )a-e t)edoc$ent% rote%ted !or nonDa+ent or nonD

accetance an+ c)arge% Inc$rred in t)i% connection4ill *e on acco$nt o! reitting *an, !ro 4)o t)ecollection in%tr$ction% 4ere recei-ed.


33/36

RETAIL BANKING //

LETTERS OF CREDIT

*E+INITION T)e Article 2 de!ine% a =Letter o! &redit= in t)e !ollo4ing ter%:

For t)e $ro%e o! t)e%e r$le%: &redit ean% an+ arrangeent )o4e-er naed or deD%cri*ed

t)at i% irre-oca*le and t)ere*+ con%tit$te% a de!inite $nderta,ingo! t)e i%%$ing *an, to )ono$r a col+ing re%entation.


34/36

RETAIL BANKING /

Confrm! or Un"onfrm!Cr!#$:

T)e credit i% called =con!ired= 4)en t)e

iorter=% *an, con!ir% to t)e e0orter t)e

ter% o! credit

t)e con!iring *an, *ecoe% lia*le !or

a+ent in ter% o! t)e letter o! creditM


35/36

RETAIL BANKING /'

Do"%mn$&r' L$$r o(Cr!#$:

A doc$entar+ Letter o! &redit a+ *e

de!ined a% an a$t)orit+ i%%$ed *+ t)e oening

*an, on *e)al! o! t)e iorter in !a-o$r o! t)e

e0orter 4it) t)e %ti$lation t)at t)e dra!t%dra4n t)ere$nder 4ill *e d$l+ )ono$red.

ro-ided t)at t)e ter% and condition% a%

entioned t)erein are d$l+ colied 4it).


36/36

RETAIL BANKING /7

R)o"&*+ &n! Irr)o"&*+L$$r, o( Cr!#$: A re-oca*le credit= can *e aended or

cancelled *+ t)e oener% *e!ore t)e e0ir+

date o! t)e Letter o! &redit.

An =irre-oca*le credit= cannot *e altered or

cancelled 4it)o$t t)e con%ent o! all t)e

artie% i.e. t)e oener t)e oening *an,ert)e con!iring *an,er and t)e *ene!iciar+.

retail+banking+forex.ii (1)

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