FE REPORT
The central bank has allowed electronic presentation and processing of export documents under Documentary Collection arrangements, aiming to align export procedures with ongoing digitalisation initiatives.
Under the move, authorised dealer (AD) banks can process export documents through secure bank-to-bank electronic channels for both Documents against Payment (DP) and Documents against Acceptance (DA), in line with the Uniform Rules for Collections (URC 522) and its Supplement for Electronic Presentation (eURC), subject to compliance with the prescribed guidelines.
To this effect, the central bank issued a notification on Tuesday.
According to officials, electronic processing will be allowed based on mutual agreement between local and overseas banks, including agreement on document formats and place of presentation.
Sales contracts must also specify that documentary collections will be handled electronically under eURC, they added.
All documents may be presented electronically where Electronic Transferable Records (ETRs) are legally permitted, according to the notification.
Where ETRs are not recognised, title or transferable documents must be sent physically, while other documents may be transmitted electronically.
In such cases, banks may also provide authenticated electronic copies, the notification revealed.
The central bank has also allowed digital endorsement of title documents through recognised electronic platforms, digital signatures, Digitally Signed Endorsement Certificates (DSEC), or SWIFT-based messages.
AD banks will have to ensure secure transmission, proper record-keeping, and verification of digital signatures, the officials explained.
"ADs may implement the system on a pilot basis using a phased, risk-based approach and must inform the central bank when initiating pilot operations," a senior BB official told The Financial Express (FE) in response to a query.
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