Documentary Collection

The seller/beneficiary will arrange for the shipment of goods according to the negotiations made with the foreign party and will submit the shipment documents along with other necessary documents required by the buyer/applicant to the F.X. branch of the bank. The bank will send the documents including the bill of exchange drawn for the buyer/applicant and the schedule to one of its correspondent banks in the country of the buyer/applicant. The applicant should pay the charges of the bank for cancellation of the stamp of the bill of exchange and the express post charges as per tariff.
If the order of the beneficiary certifies 'Documents against payment' to the buyer, the correspondent bank will receive the amount of money for the documents after the drawee's acceptance and then credits the bank's account.
If beneficiary orders “shipping documents against drawee’s acceptance or without correspondent bank’s responsibility”, the correspondent bank will present the documents to the applicant after his acceptance.
In case the correspondent bank is responsible for collecting the payment, it will do the same at maturity and will credit the amount to BSI’s account. In the event of non-payment( if only the obligation of the drawee is concerned), the bank will protest the bill of exchange.
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