Export factoring on non-recourse basis permitted for banks, subject to due diligence, invoice notation and reporting. Authorised Dealer Category I banks may provide export factoring on a non recourse basis subject to conditions: ensure genuine invoices and no over financing by determining working capital against factored invoice values; remit net realisations to financing banks if not financing; complete KYC and due diligence; arrange for Import Factor credit evaluation and collection or obtain correspondent bank credit evaluation in single factor cases; annotate invoices directing payment to the Import Factor; close factored export bills and report them in EDPMS.
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Export factoring on non-recourse basis permitted for banks, subject to due diligence, invoice notation and reporting.
Authorised Dealer Category I banks may provide export factoring on a non recourse basis subject to conditions: ensure genuine invoices and no over financing by determining working capital against factored invoice values; remit net realisations to financing banks if not financing; complete KYC and due diligence; arrange for Import Factor credit evaluation and collection or obtain correspondent bank credit evaluation in single factor cases; annotate invoices directing payment to the Import Factor; close factored export bills and report them in EDPMS.
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