A bank circular said authorised dealers are now permitted to process export documents through bank-to-bank electronic means.
The new policy applies to documentary collection arrangements under both documents against payment (DP) and documents against acceptance (DA) modes.
The initiative aims at aligning the country’s export procedures with global digitalisation standards, specifically following the Uniform Rules for Collections (URC 522) Supplement for Electronic Presentation (eURC).
Under the new instructions, ADs must ensure a prior mutual agreement exists with their overseas counterparts, such as collecting or presenting banks. This agreement must specify the format for electronic records and the designated place of presentation.
Furthermore, all sales contracts must explicitly indicate that documentary collection will be handled electronically under eURC guidelines.
Where local laws permit electronic transferable rRecords (ETRs), ADs may present all documents—including those related to cargo title—electronically, provided their legal attributes remain fully preserved.
If local laws do not permit ETRs, documents involving title to goods or transferability must still be sent physically. Other supporting documents may continue to be sent electronically.
If a collecting bank requires physical documents despite electronic presentation, ADs may provide authenticated electronic copies marked ‘electronically received-authenticated copy’.
The central bank has authorised several secure endorsement methods to maintain the integrity of the process.
Banks are required to maintain a complete audit trail of all electronic submissions and store these records securely in compliance with existing regulations.
ALCHEMPro News Desk (DS)
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