Guarantees and Standby LC

Guarantee

Guarantee means proving formal assurance for the lending. The bank guarantee is that the lender will be assured that the debtor's liabilities are covered. The bank guarantee enables the debtor to acquire goods or buy equipment. Bank Guarantee is used for both domestic and international transactions and a single bank is involved in it.

Standby LC

A Standby Letter of Credit(SBLC) is a legal document where the issuing bank commits to pay the beneficiary if the applicant fails to make the payment. This Standby LC is used for only international transactions and involves a third-party bank, usually foreign banks.

The Web Channel user with access to Trade Finance have capabilities to view the Export LCs dashboard. The dashboard displays the list of LCs available.

Navigation path: Web Channel > Side Menu > Trade Finance > Issued Guarantees & Standby LC.

UX Overview

Guarantees and Standby LC Overview

This section displays the summary of all the Guarantees and Standby LC. The user has options to view the overview in desired currency and see only Guarantees or Standby LC or combine them all. Use the drop-down options to filter accordingly. The user can do any of the following:

• Create a new Guarantee and Standby LC.
• Create new Amendments.
• Download the list of Guarantees and Standby LC.
• Expand the record to see the summary of the record.
• Download or print the individual LC.
• View details of individual records. The user has to click on View Details.

Guarantee and Standby LC Overview

The overview section displays the summary of all the LCs raised by the user. Certain classifications include the status of the LCs and the type of LCs. The following are things the user understands from the Overview section.

• The user understands the current status (Pending, Drafts, Approved, and Rejected) of the LCs. This displays the total records and total value of each status.
• The bar chart shows the type of LCs Performance, Bid, Advance, Shipping, and Mixed.
• The bar chart has two color codes (light and dark). Light color represents the total fund value raised by the user in the different LC types. Dark color represents the LCs that are approved by bank. If the user focuses on any bar, there are sub-options stating the total limit, Available limit, and Utilized.
• Change the currency.
• View summary of only Guarantees or Standby LC or both.

Recent Details

The Recent Details section helps the user see the last two created or updated LCs, and the top shows the latest record. The user can also navigate to see the details of recent LCs. There are three details available for each LC and quick link View Details, this navigates to summary details. The user also has quick links to Create New Guarantee and Standby LC or Create New Amendment.

• Beneficiary: Name of the beneficiary.
• Type - Ref: The combination of type and reference of LC.
• Status: The current status of the LC.

Guarantees and Standby LC

This section displays all the records created by the bank user. The default pagination is 10 records per page.

• Search: Use the keywords like Beneficiary, Transaction, and Reference this to search for the records.
• Filtering: Use the values displayed in the filter to narrow down the search.
  
  Filtering Options:

  • Product Type
    • Guarantee
    • Standby LC
  • Guarantee and SBLC Type
    • Performance: To secure the applicants satisfactory fulfillment of its contractual performance obligations.
    • Bid: This supports the issuers bid for a contract.
    • Advance: To ensure the repayment of an advance payment made earlier for the contract.
    • Shipping: To ensure the damages repayment during the products shipping.
  • Status
    • Submitted to Bank: The record is submitted to the bank.
    • Processing with Bank: The record is processing with the bank.
    • Approved: The record is approved by the bank.
    • Rejected by Bank: The record is rejected by the bank.
    • Returned by Bank: The record is returned by the bank.
    • Cancelled: The record is cancelled by the user.
    • Draft: The record is not submitted to the bank, pending or incomplete stage by the user.
  • Time Period
    • Today: Considers the records created on the same day.
    • Last One Month: Considers the records created from the last 30 days.
    • Last Six Months: Considers the records created from the last 180 days.
    • Last One Year: Considers the records created from the last 365 days.
    • YTD: Considers the records created from start day of the calendar year.
• Beneficiary: Specifies the name of the beneficiary.
• Type: Specifies the type of record Guarantee or Standby LC.
• GT & SBLC Type: Specifies the type of Guarantee or Standby LC.
• Reference: Reference number for Guarantee or Standby LC.
• Created on: Record created date.
• Status: Current status of the record.
• Actions: Available actions for the user. View Details as per the record level and Print and Download when record is expanded.

Guarantees and Standby LC - Record Expanded

The Guarantees and Standby LC - record expanded displays the additional details for the particular record.

• Amount: Total amount referred in the current Guarantee or Standby LC.
• Issued Date: The record issuing date.
• Expiry Type: Specifies the type of expiry open-ended, date, and conditions.
• Mode of Transaction: Specifies the type of transaction, swift or non-swift.
• Advising Bank: Name of the advising bank for the current record.
• Instructing Party: The name of the party providing instructions to the current record.

Download and Print options help the user to download or print the LC.

Guarantee and Standby LC - Issuance Details

The Issuance Details page summarizes the Guarantee and Standby LC page. The user can perform any of the following actions:

• View the Guarantee and Standby LC.
• Print and Download the Current LC.
• View the list of Amendments made to the current LC. For this the user, needs to switch to the Amendments tab.
• Go back to the Guarantees and Standby LC Dashboard.

• Issuance Summary

  

  • Transaction Reference: The reference number for this transaction.
  • Created On: The record creating date.
  • Created By: Name of the user creating this record.
  • Issuance Status: Current Status of the record.
• Product Details

  

  • Product Type: The type of the product Guarantee or SBLC.
  • GT and SBLC Type: Type of GT and SBLC Performance, Bid, Advance, Shipping.
  • Related Transaction Reference: The transaction reference number related to the current LC. This is an optional field.
  • Mode of Transaction: The transaction mode of exchanging money swift mode or non-swift mode.
  • Instructing party: The receiver party details. This is applicable for swift mode.
  • Applicant Party: The application party details for the record. This is optional field. This is applicable for swift mode.
• Transaction Details

  

  • Request Amount: The total value of the Guarantee or Standby LC.
  • Expected Issue Date: The issue date of the LC. This is an optional field.
  • Expiry Type: The type of the expiry Open Ended, Date, and Conditions. Based on the selection additional fields new fields are also visible. All these fields are optional.
    • Open Ended: No New Fields
    • Date: Expiry Date is visible.
    • Conditions: Expiry Date and Expiry Condition field is visible.
  • Governing Law: The processing country governing law. This is an optional field.
  • Applicable Rules: The rules which are applicable to the current LC. This is an optional field.
  • Delivery Instructions: Specific instructions for delivering the product. This is an optional field.
  • Other Instructions: Other specific instructions related to the LC. This is an optional field.
• Beneficiary and Advising Bank Details

  

  • Beneficiary Details
    • Beneficiary Name: Name of the beneficiary.
    • Beneficiary Address: Address of the beneficiary. This is an optional field.
  • Advising Bank Details - All the following fields are optional.
    • Bank Name: Name of the advising bank.
    • Swift / BIC Code: Advising bank swift / BIC code.
    • International Bank Account Number: Advising bank international account number.
    • Local Code: Advising bank local code.
    • Bank Address: Advising bank local address.
• Bank Instructions and Documents

  

  • Settlement Accounts:
    • Currency:
    • Charge Account:
    • Commission Account:
    • Cash Margin Account:
  • Additional Details: All the following fields are optional.
    • Limit Instructions:
    • Other Instructions:
    • Message to Bank:
  • Supporting Documents:
    • Uploaded Documents:

Create New Guarantee or Standby LC.

The process for creating a guarantee and standby LC is same. Based on the requirement the user needs to select either one of them. To create a new guarantee or standby LC, following are steps:

1. Click on Create New Guarantee & Standby LC displayed in the top right of the Guarantees and SBLC dashboard page. This navigates to Create New Request page.
   
2. In Provide Product Details page, do the following:
   
   
   1. Select the type of product. Choose Guarantee or Standby LC.
   2. Select the LC type from drop-down list. Choose Performance, BID, Advance, or Shipping.
   3. Enter the Related Transaction Reference. The user can also use the Look-Up an option to fill the details. This is an optional field.
      1. The look up opens a pop-up, enter the details like Beneficiary Name, Issue Date, Product Type or Bill Type to narrow down the search.
         
      2. From the list, select the record. The application automatically fills the Transaction Reference.
   4. Select the Mode of Transaction. Choose from Swift or Non Swift.
      1. If user chooses Swift Mode, then enter the Instruction Party and Applicant Party details. The Applicant Party is an optional field.
      2. If user chooses Non Swift mode, then no additional details are necessary.
   5. Click Save and Continue.
3. In Provide Transaction Details page, do the following:
   
   
   1. Enter the mandatory fields like Currency, Amount, How would you accept the demand, and Expiry date.
      1. Based on the selection of Expiry date additional fields will be visible. All the new fields are optional.
         • Open Ended: No New Fields
         • Date: Expiry Date is visible.
         • Conditions: Expiry Date and Expiry Condition field is visible.
   2. Based on the requirement end the other optional fields Transferable, Expected Issue Date, Governing Law, Applicable Rules, Other Instructions, and Delivery Instructions.
   3. Click Save and Continue. This button is enable after filling all the mandatory fields.
4. In Beneficiary and Advising Bank Details page, do the following:
   
   1. Click Add Additional Beneficiary to add additional beneficiary. The user can add up to five beneficiaries here.
      1. Select from Existing Beneficiary allows the user to select the beneficiary directly from the drop-down list.
         
      2. The user can choose Enter Manually to add the details manually. By clicking the check box Check this to save the beneficiary for future use allows the user to reuse the details for future purpose.
         
   2. Enter the Advising Bank Details. This is an optional field. The user can enter these details manually or use Look Up to auto populate all the fields. The following are thedetails to use Look Up function:
      
      1. Enter the details Bank Name, Branch Name, Country, or City to narrow down the search details.
      2. Click on the desired row to auto populate the fields.
         
      
5. In Bank Instructions and Documentation page, do the following:
   
   1. Select Single Settlement Account or Multi Settlement Account.
      1. If user selects Single Settlement Account, then select the Currency and Charge Account from the drop-down details.
         
      2. If the user selects Multi Settlement Account, then user selects the Currency and account types Charge, Commission, and Cash Margin.
         The account types are the checkboxes, user can select more than one type to send the amount. Choose the currency and types of account types and later user selects the account details from the drop-down.
         
   2. Enter the optional fields Limit Instructions, Other Instructions, and Message to Bank.
   3. Upload the supporting documents.
      • Upload Files

      1. To upload documents click on Upload New File.
      2. A pop-up window appears, navigate to a specific file and click Upload.
      • Delete Uploaded Files

      1. To Delete the uploaded file click on <Trash Icon>.
      2. Click Yes on the confirmation box appears to delete the file.
         
6. In Clauses and Conditions page, do the following:
   
   1. Choose the Clause and Conditions Type from the drop-down list.
      At least one condition is needed and user can add more conditions by clicking Add New Clause and Conditions. There is no limit to the total conditions added.
      To delete the clause, click Delete corresponding to the clause.
7. In Review and Submit page, review the details and click Submit to submit the record.
   
   

Delete Draft LC

A record can be deleted if the status is Continue Editing, else the record cannot be deleted. The following are thesteps for deleting a record.

1. Click Continue Editing. This will navigate to the Review and Submit page.
2. Click the Close button on any of the five pages.
3. Click the Delete Permanently button in the confirmation dialogue box to delete the record and go to the Import LC dashboard.

Save Record

This helps the user save an LC record's partially or completely filled details. There are two ways to save a record.

First method

1. Click Save.
2. Click Yes in the dialog box to save the record.

Second method

1. Click the Close button on any of the 5 pages.
2. In the confirmation dialog box, click the Save as Draft & Close button to save the record and go to the Import LC dashboard.

Clear Inputs

This allows the user to reset the details to blank fields for the record. The following are thesteps to clear inputs.

1. Click Clear.
2. Click Yes in the dialog box.

Copy Details

This allows the user to copy existing LC details on the page. The following are thesteps to Copy details.

1. Click Copy Details.
2. Select the Import LC details from the list. The user can also search using beneficiary of LC.
3. Click Copy Details in the dialog box.

Download or Print Guarantee and Standby LC

The user has two options to download Guarantee and Standby LC records. Either they can download the complete list displayed on the LC dashboard page and download or print individual LCs.

Download Guarantee and Standby LC list

The following are thesteps to download Guarantee and Standby LC list into excel (.xlsx).

1. Click the Ellipses.
2. Select the option Export List. This downloads the list of Guarantee and Standby LC records into an excel file.
   

There are two ways to download or print an LC. The first way is to expand the individual record(click the arrow) to see the action items Download and Print at the right of the record and second way is to download the LC from the view details page.

Download or Print individual Guarantee and Standby LC - from LC Dashboard:

1. Click the arrow to see the summary of the Guarantee and Standby LC record.
   
2. Click Download or Print to download or print LC.
   The download options downloads LC in a PDF format. The print option opens a print dialogue box for printing the Guarantee and Standby Details.
   

Download or Print individual Guarantee and Standby LC - from LC Details page.

1. Click View Details of the individual LC.
2. Click Download or Print icon at the top right of the page to download or print LC details.
   

SWIFT MT 700

SWIFT is an acronym for Society for Worldwide Interbank Financial Telecommunication. SWIFT provides a secure, highly encrypted, and reliable messaging service to all financial institutions.

This is an additional feature provided to the Trade Finance Micro App to implement the SWIFT MT700 codes to the fields available in LCs. If there is no SWIFT code, then NA will display adjacent to the field. The same SWIFT MT700 codes will also display in the download and print LCs.

Enable the Spotlight configurations to display the SWIFT tags. Individual configurations are available for Web Channel, download, and print LCs.

Web Channel SWIFT MT700 codes:

Download and Print SWIFT MT700 codes:

Swift and Advices

The bank user with required permissions can see the Swift MT messages and Payment Advices for a particular record. The following is the procedure to view Swift and Advices for a particular record.

1. In the dashboard, search or filter for the record.
2. Click View Details on the record to view Swift and Advices. The navigates to the detailed page view.
   
3. Click SWIFT & Advices.
   
4. In the pop-up,
   • Select Payment Advices to view payment advices for a particular record.
     
   • Select SWIFT MT to view in advices in SWIFT MT mode.
     

SRMS Configuration

The SRMS configurations are shipped as a part of this feature. For more information, see SRMS Configurations.

Experience API

The following are theAPIs for Guarantees and Standby LC.

Name	Description	Introduced In
createGuarantees	This API creates the Guarantee.	2022.07
saveGuarantees	This API saves the Guarantee.	2022.07
getGuaranteesById	This API retrieves the specific Guarantee by ID.	2022.07
getCorporatePayees	This API retrieves corporate payees for a particular customer	2022.07
createCorporatePayee	This API creates corporate payees for a particular customer.	2022.07
updateGuaranteeLetterOfCredit	This API updates individual Guarantee.	2022.07
updateGuaranteeLcByBank	This API updates individual Guarantee by bank.	2022.07
generateGuarantees	This API generates file id to download the PDF for individual Guarantee.	2022.07
generateGuaranteesList	This API generates file id to download the list of Guarantees.	2022.07