Contents at a Glance

• Learning Trade Finance Concept So far.

• Responsibilities as a Team Head.
• Challenges Ahead.
• Role in Future course of time.
Learning Trade Finance Concept So far
• Trade Finance (Fundamentals & Concepts)
i. Banking
 Role of Banks.
 Role Of Bank Regulator (RBI )
 Types of Banks
 Source & Application of Funds
 Types of Bank A/c
 Banking terms :- Base rate, IFS Code, RTGS & NEFT, Cash, Payorder, Cheques.
ii. Basic of Trade
 Mode of Payment in Trade :-C.W.O, C.O.D, LC, DC, Open A/c .
 Risk Involved
iii. Letter of Credit
 LC Definition
 Need of LC
 Parties to LC
 Types of LC
 Documents in LC
 Mode of Transport Docs.
 Terms :ICC, Ucp, SWIFT, SFMS, INCOTERMS, Wiith Recourse / With out recourse
 LC Flow
iv. Investeurs role in LC transaction.
Pre Discounting Techniques
Discounting
Post Discounting Techniques.
Pre Discounting Part
• Checking LC Draft
• To Check new LC & verify.
• To Scrutinize the docs in accordance with LC
• Docs handling & Maintenance in System & network.
• Creating LC & bill transaction in ILC.
• To Ensure timely forwarding from negotiating bank &
Delivery of docs to LC opening bank.
• Follow up of Acceptance from LC opening bank .
Discounting
• To Ensure immediate Discounting of Bills once
Acceptance received from LC opening Bank, after
approval from RM’s & Clients.
• To Ensure arranging of complete LC & its Amendment if
any, along with proper advising of LC (in case of Physical
LC) to negotiating bank.
• To Ensure Complete Docs with proper invoices(P.I.) & LR
as per LC terms to arrange in the negotiating bank.
Post Discounting Part
• To Ensure proper & accurate Log creation of bills with
each day discounting.
• To ensure Bills are correctly discounted by the banks as
per Acceptance received and are charging proper rate of
interest , handling charges and margin.
• To ensure all discounted docs are uploaded in the
software & creation of Credit advise of same.
• To cross verify all docs folder are properly arranged in the
networking drive with complete set including bank advice
and investeurs credit advice & Cover page are attached in
all docs.
Responsibility as a Team Head
• To ensure all docs are scrutinized & set get prepared
properly & timely to present in the bank.
• Supervision of timely collection, Forwarding & delivery of
docs at their respective LC opening bank.
• To ensure all required information related to LC & their
bills are timely and accurately updated to their respective
R.M.’s & Clients.
• Supervision of team reporting time at office on daily basis.
 Challenges Ahead
• Effective & efficient handling of Bills.
• Complete automation of Bill discounted process.
• Effective software up gradation.
• To not rely on small bunch of banks , increase Banks
spread to beat competition and make system more
smooth.
Role in future course of time.
• To supervise and manage whole domestic trade finance
department.
• To complete take care of operation process including
margin & Due date payments.