AMNS India Performs Paperless Invoice Discount Transaction With ICICI Bank
AMNS India said on Sunday that it had executed “a paperless bill discount transaction” in partnership with ICICI Bank.
Gujarat-based ArcelorMittal Nippon Steel (AMNS) India said it was the first such transaction in India.
“The end-to-end electronic transaction, including digital letter of credit (LC) issuance, advice and document presentation, took place between AMNS India, its Baroda-based client Vijay Tanks and ICICI Bank,” said the steelmaker in a press release. .
“In a step forward towards the digitalization of commercial payments, AMNS India announced today (Sunday) that it has executed the country’s first national paperless invoice discount transaction in partnership with ICICI Bank,” he said. declared.
ICICI Bank was the intermediary between the buyer and the seller, according to the statement.
The bank’s branch in Baroda, Gujarat issued a letter of credit for buyer Vijay Tanks, while its branch in Hazira advised and negotiated for seller AMNS India, he said.
The terms of the letter of credit required AMNS India to digitally present documents to ICICI Bank attesting to the flow of the transaction.
In the statement, AMNS India Deputy Chief Financial Officer Amit Harlalka said it was a positive step towards the digitalization of commercial payments and improved working capital efficiency for the company and its partners. commercial.
“This transaction is viewed by many in banking and business as a prelude to blockchain, an even more robust technology in terms of security, identity and transparency, and which is now widely studied for possible adoption by banks. Indian, ”he said.
Ajay Gupta, Director of ICICI Bank (Transaction Banking and SME Group), said: “We are delighted to have partnered with AMNS India to execute the first paperless invoice discount transaction in India. India.”
This innovative solution has the potential to enable higher speed of transactions at lower cost for customers, said AMNS India.
In paper exchanges, physical goods sometimes arrive before their supporting documents, resulting in demurrage costs for businesses. It will be a thing of the past with such digital developments, he said.
AMNS India further stated that it actively promotes the digitization of processes in all of its workflows, from finance to sales to operations.
The COVID-19 pandemic has forced companies in the steel industry and beyond to manage their manufacturing and administration in different ways, and has accelerated the adoption of digital technology, the statement said.
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