Trade and Remittance Services

Bank Guarantees

• Performance Guarantees
  RBL Bank issues performance guarantees to assure payment in the event the customer fails to perform a non-financial contractual obligation.
  
• Financial Guarantees
  RBL Bank issues financial guarantees to assure repayment of financial obligation in the event of non-completion of the accepted terms by the client.
  
• Bid Bond Guarantees
  We issue bid bonds to assure that our clients have the financial capability to comply with the terms of contract in the events that the bid submitted by our client is accepted.
  
• Advance Payment Guarantees
  We issue advance payment guarantees to assure buyers that advance payments will be returned if sellers does not fulfill its commitments after receiving payments.

Import of Goods and Services

• Letter of Credit Issuance & Amendments
  RBL Bank’s trade offerings include issuance/amendment of sight and issuance Letter of Credit (LC). Our bank provides a high level of expertise in providing advisory services to draft and issue LC for client-specific requirements. A LC is a written undertaking issued by a bank on behalf of the applicant in favour of a beneficiary to pay a certain sum of money on the presentation of LC-complying documents. Here the creditworthiness of the bank replaces that of the buyer.
  
• Import Bill Collection
  RBL Bank’s import services include handling your documents in accordance with the collection instructions received from the remitting bank. Our experts will provide assistance in making payments for purchased goods on the basis of the document against payment (DP) or document against acceptance (DA).
  
• Import Bill (under LC)
  RBL Bank honours payment under documentary credit on behalf of our customer, provided all the documents received conform to the terms of the LC. Our team of experts carefully scrutinise the documents and fulfill the commitment as per terms.
  
• Direct Import Payment
  As part of our trade offering, we offer payment services to the customer where our client has directly imported the goods and need to make payment for the same. We also assist our client in fulfilling the regulatory requirement for direct import.
  
• Delivery Order Issuance/Shipping Guarantee
  RBL Bank’s trade offering include issuing delivery orders to importers to make sure that the cargo is released upon receipt of airway bill and CAN (cargo arrival notice). We also have facilities to provide shipping guarantees for the shipping company to enable importers to take delivery of goods without bill of lading as per the client requirement and bank policy.
  
• Advance Import Payment
  RBL Bank’s import services include advance import payment facility, where you can make advance payments for goods to be imported before shipment. This will assure the timely processing of remittances for imports. We also assist our client in fulfilling the regulatory guidelines. The onus of submitting the bill of entry lies on the importer.
  

Import Finance

• Trade Credits (Buyer’s Credit/Supplier’s Credit)
  Another one of our trade finance offering is arranging to finance your imports through buyer's or supplier's credit. The import financing packages will be specifically designed to suit your company’s financials and business requirements at competitive rates. Payments to your suppliers can be arranged in a wide range of foreign currencies.
  

IDPMS

As per RBI guidelines, each import must have an offsetting outward remittance and vice versa. Import Data Processing and Monitoring System or IDPMS is an IT system incorporated and hosted by RBI to monitor import of goods and payments made for the same.

RBL Bank performs the following tasks for importers as part of its trade services:

• We monitor and keep track of all bill of entries issued by customs in the AD code of RBL bank on a real-time basis for our customers.
• For every advance import payment, RBL Bank creates an ORM (Outward Remittance Message) which is set off against the bill of entry when actual import takes place.
• RBL Bank notifies importers against pending payments against outstanding BOE of RBL Bank.
• We also notify our clients of the pending Bill of Entry submission against the payments made.
  

Export of Goods and Services

• Letter of Credit: Advising
  RBL Bank acts as an advising bank with solutions at all stages of the processes of a Letter of Credit (LC). The process is facilitated by our robust SWIFT mechanism. We act upon the issuing bank’s request to provide advise on the LC to the beneficiary. Our trade experts also help to understand LC terms better to prepare LC-compliant documents.
  
• Letter of Credit: Confirmation
  Among the trade services RBL Bank offers is LC confirmation services to safeguard your export receivables against the credit risk of the buyer’s country and issuing bank. By confirming the LC, we assume the same responsibilities as the issuing bank, thus assuring payments as per the LC terms on submission of credit compliant documents. This service is provided on a selective basis.
  
• Export Bill Collection
  Our bank’s trade operations include efficient and effective handling and dispatch of your export bills on collection. Export collection services include sending commercial documents (such as invoices, bills of lading or airway bills) and financial documents (such as bills of exchange) on a collection basis to the collecting bank based on your instructions for realisation.
  
• Export Bill (under LC)
  Our team of experts will carefully scrutinise the documents as per the LC terms and efficiently dispatch the necessary documents to your importer.
  
• Direct Export
  Clients may choose to directly dispatch the goods to the importer. As a part of our offering, we assist our client to comply with regulatory requirement for direct dispatch.
  

Export Finance

• Pre-shipment Finance
  RBL Bank’s export finance operations include the facility of pre-shipment finance to cater to the exporter’s working capital requirements. Exporters often require working capital finance to fund wages, production costs and buying raw materials. This facility can be availed both in INR as well as in foreign currency on PO/order based or on running account.
  
• Export Bill Discounting/Purchase (PSFC)
  RBL Bank offers a bill discounting facility, where exporters get discounted proceeds upfront at competitive rates against sanctioned credit limits. This facility can be availed immediately after shipment, once the export documents are routed through us.
  
• RBL Bank Gold Card Scheme for Exporters
  This scheme will be offered to eligible exporter having good track records. Export credit will be provided at competitive terms and conditions with better and efficient services. For more details on eligibility parameters, please click here

EDPMS

The Export Data Processing and Monitoring System (EDPMS) is an online tool that was introduced by the RBI in 2014 for all banks to bring their transactions with exporters online.

RBL Bank performs the following tasks for the exporters:

• We track shipping bills/softex issued pending for AD acknowledgement issued in the AD code of RBL Bank-- i.e., list of customers who have their shipping bill/softex generated but whose documents are yet to be submitted using RBL Bank AD code.
• We track bills pending for payment issued in the AD code of RBL Bank -- i.e., the list of customers who have their documents lodged but payments have not been realized.
• We notify exporters about their bills pending for AD acknowledgement and pending for payment, thus ensuring that they are not caution listed.
• We notify exporters to raise the AD transfer request to other banks to ensure that export payments are realized.
• We monitor export advance payment against bills pending and notify customers about them.

Remittances

RBL Bank offers inward and outward remittance facility to all of our clients. We carry out trade, non-trade and capital account remittances at RBL Bank. 

• Inward Remittances 
  RBL Bank’s trade services include an inward remittance facility, enabling fast and efficient transfer of foreign currency which can be converted into Indian rupee directly in your account. Our collaboration with overseas correspondent banks enables us to immediately transfer money to your accounts.
  
• Outward Remittances 
  RBL Bank offers outward remittance facility where we assist you in the fast transfer of funds and support your businesses and personal requirements across the world.

Policy Framework for Cross-Border Remittances

Capital Account Transaction

As a part of other trade offerings RBL Bank carries out Capital Account Transactions like FDI, ODI and ECB for our clients.

Foreign Direct Investment

RBL Bank offers assistance in completing regulatory requirements like FDI reporting, remitter KYC etc. to ensure hassle free credit of FDI for our clients.

Specialised services from RBL Bank to help you in FDI Reporting

“FDI” or “Foreign Direct Investment” means investment through equity instruments by a person resident outside India in an unlisted Indian company; or in 10% or more of the post issue paid-up equity capital on a fully diluted basis of a listed Indian company.

Key Features

• Dedicated staff to handle pre and post transaction
• Simplified documents and quick processing
• Swift settlement of funds, guidance from a team of subject matter experts for FDI & regulatory reporting and pre-assessed documentation
• Assistance for seeking 6 pointer remitter KYC
• Auto generation of FDI declaration letter
• Customer oriented guidance to meet regulatory compliance

Please click the button below for auto generation of FDI declaration for inward remittance received through RBL Bank.

Auto Generate FDI

Please get in touch with our Trade Sales Manager or contact your Nearest Branch for more details.

Overseas Direct Investment

RBL Bank assists our clients i.e. Indian Parties (IP) Resident Individuals (RI) to make an investment in the equity shares or CCPs of Companies incorporated outside India subject to certain stipulated conditions.

External Commercial Borrowing

We assist our clients in securing loans in foreign currency from non-resident lenders as per their requirement. We carry out diligence service of the non-resident lenders and also provide our support to complete the regulatory requirements.

Inland Trade

RBL Bank offers working capital solutions for helping clients working in the domestic markets to better manage their liquidity and negotiate term with counterparties.

This Includes following products:

• Bills discounting under domestic Letter of Credit 
  Finance by discounting inland bills drawn under Letters of Credit issued by scheduled commercial banks and MNC banks in India.
  
• Invoice Financing (Both Sales & Purchase) 
  Bill discounting facilities are customized to suit your requirement for short term finance at competitive rates include both sale invoice discounting & Purchase invoice financing.
• Factoring (Including a TReDS Platform) 
  Discounting in TReDS platform to facilitate financing of Trade receivables of MSEMEs from large corporates at competitive rates.
  Purchase of receivables by a bank/financier to provide immediate liquidity to the seller.

With Recourse: The seller remains liable, and the bank can recover dues from the seller if the buyer defaults.

Without Recourse: The bank assumes full credit risk and cannot claim from the seller if the buyer fails to pay.

Specialized Accounts for Non-Resident Entities

The bank acts as an Authorised Dealer (AD) to facilitate India operations of overseas companies.

Branch Office Accounts

Branch Offices conduct business including export/import, professional services, and research but exclude retail and manufacturing. The account is in INR currency.

Permissible Credits:

• Credits to the account should represent the funds received from Head Office through normal banking channels for meeting the expenses of the office.
• Any legitimate receivables arising in the process of its business operations.

Permissible Debits:

• For the expenses incurred by the BO
• Towards remittance of profit/winding up proceeds.

Liaison Office Accounts

Liaison Offices serve as communication channels without engaging in commercial activities or earning income in India. The account is in INR currency.

Permissible Credits:

• Funds received from Head Office through normal banking channels for meeting the expenses of the office.
• Refund of security deposits paid from LO’s account or directly by the Head Office through normal banking channels.
• Refund of taxes, duties etc., received from tax authorities, paid from LO’s bank account.
• Sale proceeds of assets of the LO.

Permissible Debits:

• Only for meeting the local expenses of the office.

Project Office Accounts

Project Offices are temporary setups managing specific projects, mainly in construction and infrastructure sectors. The account is in INR as well as in foreign currency subject to compliance of RBI guidelines.

Permissible Credits:

• Receipts from the Project Sanctioning Authority.
• Remittances from parent/group company abroad or bilateral / multilateral international financing agency.

SNRR Accounts

SNRR accounts enable non-resident entities to conduct rupee transactions for investments, trade credits, and borrowings in India or for administrative expenses of GIFT CITY entity in India.

Type of transaction for which accounts can be opened:

• External Commercial Borrowings
• Trade Credits
• Trade (Export/Import) Invoicing
• Business related transactions outside International Financial Service Centre (IFSC) by IFSC units
• Any person resident outside India, having a business interest in India

These accounts are rupee-denominated, have defined credit and debit conditions, tenure, and facilitate repatriation under RBI rules.

Please reach out to your RM and nearest branch for more details.