Guarantees and Standby LC - Received

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 Received Guarantees and Standby LC dashboard. The dashboard displays the list of LCs available.

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

UX Overview

Received Guarantees and Standby LC Overview

This section displays the summary of all the Received Guarantees and Standby LC. The user has options to view the overview in desired currency and see only Received Guarantees or Received 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 claim.
View newly received claims.
Create new Amendments.
Download the list of Received Guarantees and Standby LC.
Expand the record to see the summary of the record.
Download or print the individual LC.
Provide self acceptance to the Received Guarantees and Standby LC.
View details of individual records. The user has to click on View Details.

Received Guarantee and Standby LC Overview

The overview section displays the summary of all the LCs received by the user. Certain classifications include the status of the LCs and the type of LCs. 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 Received Guarantees or Received 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 a New Claim or New Received GT & SBLC.

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

Received Guarantees and Standby LC

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

Search: Use the keywords like Applicant, 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 for during the products shipping.
- Status
  - New: The record received from the bank.
  - Submitted to Bank: The record is submitted to the bank.
  - Approved: The record is approved by the user.
  - Processing with Bank: The record is processing with bank.
  - Returned by Bank: The record returned by bank.
  - Rejected: The record is rejected by the user.
  - Claim Honored: 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.
Applicant: Specifies the name of the beneficiary.
Product Type: Specifies the type of record Guarantee or Standby LC.
GT & SBLC Type: Specifies the type of Guarantee or Standby LC.
Transaction Reference: Reference number for Guarantee or Standby LC.
Received 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 Received - Record Expanded

The Guarantees and Standby LC Received - 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.
Currency: The currency in which the SBLC is received.
Mode of Transaction: Specifies the type of transaction, swift or non-swift.
Issuing Bank: Name of the advising bank for the current record.

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

Guarantee and Standby LC - Received Details

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

View the Received 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.
- Received On: The record creating date.
- Request Status: Current Status of the record.
- Current Self Acceptance: The acceptance status of the record. It is either Approved or Pending or Rejected.
  - If the acceptance status is rejected, we can see Last Reasons for Rejection and Last Message to bank.
  - View History is another feature to see Self Acceptance History.
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.
- Applicant Party: The application party details for the record. This is optional field. This is applicable for swift mode.
- Beneficiary: The name of the applicant.
Transaction Details
- Request Amount: The total value of the Guarantee or Standby LC - Received.
- 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.
- Auto Extension of Expiry: The flag to know if there is an extension to the expiry.
- Extension Period: The total days of extension after the expiry. This is an optional field.
- 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.
Applicant and Issuing Bank Details
- Applicant Details
  - Applicant Name: Name of the applicant.
  - Applicant Address: Address of the applicant. This is an optional field.
- Issuing Bank Details - All the following fields are optional.
  - Bank Name: Name of the issuing bank.
  - Swift / BIC Code: Issuing bank swift / BIC code.
  - International Bank Account Number: Issuing bank international account number.
  - Local Code: Issuing bank local code.
  - Bank Address: Issuing bank local address.
Additional Instructions and Documents
- Message from Bank: The message from the issuing bank.
- Supporting Documents:
  - Uploaded Documents

Self Acceptance for Received Guarantee or Standby LC

Self acceptance is the process of reviewing the data and accept/reject the Received Guarantee or Standby LC. Following are the steps to provide self acceptance.

In Received Guarantee and Standby LC dashboard page, Click View details for the record to provide self acceptance. This Navigates to Received Guarantee and Standby LC - Details page.
Verify the details, Issuance Summary, Product Details, Transaction Details, Applicant and Issuing Bank Details, Additional Instructions and Documents.
In Self Acceptance
- Select Accept, to provide the self acceptance.
- Select Reject, to disagree with the details. When selected reject:
  - Enter reason for self rejection. This is a mandatory field.
  - Message to Bank. This is an optional field.
Click Submit. This submits the self acceptance. A success message is displayed at the top of the page.

View history - Approved, Pending, and Rejected Status

The bank user can see the history of the record with status - Approved, Pending, and Rejected status. This helps the bank to see the number of times the record is back to bank with additional details like date of rejection, reasons, and return message to bank. The following is the procedure to see history of the record.

In the Received Guarantee and Stand LC dashboard, search or filter the record and click View Details. This navigates to Received GT & SBLC details page.
Click View History.

A pop-up box is displayed with history of events. The latest message is displayed at the top of the box.

Release Liability

The user with required permissions can initiate Release Liability(Closure of the undertaking). This request can only be raised for the record with status Approved. The following is the procedure to raise a Release Liability request:

In the Received Guarantee dashboard, search or filter for the record. Click View Details. This navigates to the Received Guarantee and Standby LC details page.
Click Release Liability to raise the request. This opens a pop-up box.
Provide the following details and click Submit.
1. Date of Release
2. Amount to be released
3. Release Liability Details
4. Message to Bank. This is an optional field.
A success message displays at the top of the page.

The user can click Cancel at any time to close the request.

After successful raising a request, a section Release Liability Details is added to the current record and seen in detailed view page.

Download or Print Received Guarantee and Standby LC

The user has two options to download Received 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 Received Guarantee and Standby LC list

Following are the steps to download Received Guarantee and Standby LC list into excel (.xlsx).

Click the Ellipses.
Select the option Export List. This downloads the list of Received 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 Received Guarantee and Standby LC - from LC Dashboard:

Click the arrow to see the summary of the Received Guarantee and Standby LC record.
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 Received Guarantee and Standby Details.

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

Click View Details of the individual LC.
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.

In the dashboard, search or filter for the record.
Click View Details on the record to view Swift and Advices. The navigates to the detailed page view.
Click SWIFT & Advices.
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

Following are the APIs for Received Guarantees and Standby.

Name	Description	Introduced In
createGuarantee	This API is a mock service to create received guarantees.	2022.10
getGuarantees	This API retrieves the list of received guarantees.	2022.10
getGuaranteeById	This API retrieves guarantee with SRMS ID.	2022.10
updateGuarantee	This API updates received guarantees with self acceptance.	2022.10
generateGuaranteeReport	This API downloads report for received guarantees record.	2022.10
generateGuaranteesList	This API exports the list of received guarantees.	2022.10
updateGuaranteeByBank	This API is a mock service to update the received guarantee from bank.	2022.10
Object Data Model	This Object Data Model describes the parameter name and other attribute details for Trade Finance.

Field Name

Application/Table name

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