Standard Chartered launches SME Banking

Standard Chartered Bank, India’s largest international bank, has launched the SME Banking World Debit Card, a first-of-its-kind cash management tool that provides convenience, savings and relationship rewards for small and medium enterprise (SME) customers. This debit card is available to all SME customers having a transactional account with the Bank. The card is a feature of Standard Chartered’s strengthened SME Banking offering launched last year.
The Standard Chartered SME Banking World Debit Card designed to cater to the specific needs of SMEs has the following exclusive features:

• A first to market proposition of enabling different limits for different cardholders thus mitigating the risk due to multiple cards
• A debit card for each account signatory is now possible thus enabling greater convenience and flexibility in transacting
• High daily cash withdrawal and spending limit of up to a maximum of INR 5 lakhs to support business spends; the highest in the market
• A first to market offering of “360 Degree Rewards” where the SME customer earns reward points not only for transactions on the SME debit card but also for various other product relationships with the Bank
• International access with global payments at over 30 million establishments and cash withdrawal from more than one million ATMs worldwide

Standard Chartered launches SME Banking

The strengthened SME Banking offering aims to seamlessly meet the evolving financial needs of India’s fast growing SMEs and power their aspirations for growth in the Indian and international markets”, said Rakesh Singh, General Manager, SME Banking India, Standard Chartered Bank. “The Standard Chartered SME Banking World Debit Card is an innovative and first of its kind cash management tool for a fast-paced business environment. While it allows greater convenience to our customers it also marks our commitment in rewarding our customers for their existing relationships with us, which is a first for SMEs in India.

Standard chartered sme banking

Your right partner in building successful businesses

At Standard Chartered Bank, we share your vision for business growth. That’s why, our SME Banking team is committed to supporting you with customised product packages, responsive services and access to expert advice.

With an extensive international network and trade expertise spanning Asia, Africa and the Middle East, we can help in your business expansion.

SME Treasury Services

Our SME Treasury Services allow your business to enjoy various foreign exchange and investment products and services to meet your hedging and yield enhancing objectives.

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cheque overpayment scam?

If you are selling something over the internet or through the classifieds, you may be targeted by a cheque overpayment scam. You might receive an offer from a potential buyer  and accept it. The scammer then sends you a cheque, but the cheque is for more money than the agreed price.

The scammer will invent an excuse for the overpayment. For example, the scammer might tell you that the extra money is meant to cover the fees of an agent or extra shipping costs. The scammer might just say that it was a mistake they made when they wrote the cheque.

The scammer will then ask you to refund the excess amount—usually through an online banking transfer or a wire transfer (such as Western Union). The scammer is hoping that you will do this before you discover that their cheque has bounced. You will have lost the money you paid into their account, and if you have already sent the item you were selling, you will lose this as well. At the very least, the scammer will have wasted your time and prevented you from accepting any legitimate offers.

cheque overpayment scam

People selling high-ticket items such as cars, motorcycles or computer gear via the Internet should be aware of a cheque scam that is bilking victims out of thousands of dollars. Although the scam has been around for quite some time, recent trends indicate that it is netting an increasing amount of victims, especially among car owners looking to sell their vehicles.

Typically, an overpayment cheque scam works like this:

A seller places an Internet advertisement for a car or other item with a high price tag.

Later, the seller receives a generous offer for the item, usually via an email.

The seller agrees on the price, and, often, also agrees to the proviso that he or she refuses any other offers for the item.

The scammers then send a cheque for the item. However, the cheque is for substantially more than the specified amount.

The scammers invent some excuse for this overpayment and ask that the balance be electronically transferred to a specified bank account. For example, they may claim that the extra funds are to pay the fees of an agent who is handling the sale or to cover shipping costs.

The seller dutifully transfers the amount out of his or her own funds.

Later, the seller finds that his or her bank has dishonoured the cheque. In some cases, the bank may actually have cleared the funds, but discovers later that the check is a forgery or was stolen.

Thus the seller has been bilked out of a substantial amount, with little chance of recovering the money. Furthermore, the item remains unsold and the seller may have rejected legitimate offers in the mean time.

The Overpayment or Advance Payment Scam is the most common form of fraud encountered in on-line sales of goods but has also been the means of fraud in some sweetheart scam cases. It is based on a fundamental misconception about how cheque clearing works and the meaning of the phrase ‘cleared funds’.

When a cheque is paid into a bank account it has to be fully verified before the funds can actually be credited to the account. Even in this day-and-age this means that the actual physical cheque has to be returned to the issuing bank for full authorisation for the funds to be credited. If any anomaly is discovered at this stage, the entire transaction is cancelled.

What this means in practice is that when you pay a cheque into your account your bank will do a preliminary enquiry about the issuing account and then (because of the pressure from the public to clear/credit funds more rapidly) will credit the funds to the recipient account within typically 6-8 days.

Many people, in fact most of the general public, will then regard these funds as having ‘cleared’ and even banks refer to the credit in this way. The problem is that until the physical cheque is returned to the issuing bank and is then checked the entire transaction is in question.

If the issuing bank finds the cheque to be fraudulent in any way (forged or stolen cheque, false signature , altered amount etc.) the credit does not take place, the recipient bank is informed and the initial credit to your account is reversed (the seemingly cleared funds vanish). This process can take weeks.

This means that there is a window of opportunity for fraud from the moment that the funds appear to clear and the transaction reversal weeks later because you think you have money in your account that is not actually there!

The Overpayment or Advance Payment Scam uses this misconception of ‘cleared funds’ for fraudulent purposes by requesting repayment of these ‘ghost’ funds during the period of susceptibility. There are many variants in how the fraud is presented but a typical form on classified sales sites follows this format:

An email response will be received by an advertiser offering to purchase the goods immediately at the asking price. It will ask the advertiser to confirm the ‘the final price’ and ask for account details so that they can arrange payment.

Either in this email or a subsequent email there will be a query about whether you will accept a cheque/money order/bankers draft (which does not fit with their request for account details!) If the advertiser accepts this, an agreement is made to send the payment.

Pre-shipment credit

Pre-shipment credit, as the name suggests, is given to finance the activities of an exporter prior to the actual shipment of the goods for export. provides different type of Pre-shipment credit to its worthy customers for the following purposes:

• Cost of production or purchase
• Packing including any special packing for export
• Cost of special inspection or tests required by the exporter
• Internal transport cost
• Port, customs and shipping agent’s costs
• Freight and insurance charges if the contract is either C&F contract or a CIF contract and
• Export duty or tax etc

For Pre-shipment finance must consider the following factors related to exporters such as:

• Honesty, integrity and capital of the borrower
  

  Pre-shipment credit

• Exporter experience in the line
• Security offered
• The margin and the rate of interest
• The banks previous experience about the exporter
• The standing of the foreign buyer

Banks provides facilities to extend Pre-shipment credit for contracts made on the basis of cables/fax/telex provided the following minimum information is available:

• Details regarding customers
• Particulars of the items
• Quantity and unit price
• Terms of sales and payment and
• Date of shipment

Documents for shipment

Documents for shipment

Documents submission

In this step exporter who confined will prepare export related documents and submit those documents for negotiation. According to those documents  collects proceeds from the former issuing banks.

Documents for shipment

Export Financing

Financing exports constitutes an important part of a bank’s activities. Exporters require financial services at four different stages of their export operation. During each of these phases exporters need provides different types of financial assistance depending on the nature of the export contract are as follows:

• Pre-shipment credit
• Post-shipment credit

Receiving Letter of Credit

After getting contract for sale, exporter should ask the buyer for Letter of Credit (L/C) clearly stating terms and conditions of export and payment.

The following are the main points to be looked into for receiving/ collecting export proceeds by means of Documentary Credit:

The terms of the Letter of Credit are in conformity with those of the contract;

The Letter of Credit is an irrevocable one, preferably confirmed by the advising bank;

The Letter of Credit allows sufficient time for shipment and negotiation.

(Here the regulatory framework is UCPDC-500, ICC publication)

Terms and conditions should be stated in the contract clearly in case of other mode of payment:

Cash in advance;

Open account;

Collection basis (Documentary/ Clean)

(Here the regulatory framework is URC-525, ICC publication)

Procuring the materials Letter of Credit

After making the deal and on having the Letter of Credit opened in his favor, the next step for the exporter is to set about the task of procuring or manufacturing the contracted merchandise.

Receiving Letter of Credit

Shipment of goods Letter of Credit

Then the exporter should take the preparation for export arrangement for delivery of goods as per Letter of Credit and incomer’s, prepare and submit shipping documents for Payment/ Acceptance/ Negotiation in due time.

Securing the Order for Export

After getting ERC Certificate the exporter may proceed to secure the export order. He can do this by contacting the buyers directly or through agent. In this purpose the exporter may get help from:

Securing the Order for Export

• License Officer;
• Buyer’s Local Agent;
• Export Promoting Organization;
• Mission Abroad;
• Chamber of Commerce (local & foreign)
• Trade Fair etc.

Signing the Contract For export

After communicating buyer, exporter has to get contracted (writing or oral) for exporting exportable items from a country detailing commodity, quantity, price, shipment, insurance and marks, inspection and arbitration etc.

Registration of Export

The import and export trade in any country are regulated by the Import and Export (Control) Act, 1950.Under the export policy of a country the exporter has to get valid Export registration Certificate (ERC) from Chief Controller of Import & Export (CCI&E). The ERC is required to renew every year. The ERC number is to incorporate on EXP forms and other papers connected with exports. MBL mainly handles export of readymade garments, jute goods, leather, plastic scrap, handicrafts etc. The followings process must be passed by a exporter to open a documentary credit.

Registration of Exporters

For obtaining ERC, intending any exporters are required to apply to the controller/ Joint Controller/ Deputy Controller/ Assistant Controller of Imports and Exports, in the prescribed form along with the following documents:

Registration of Export

• Nationality and Assets Certificate;
• Memorandum and Article of Association and Certificate of Incorporation in case of Limited Company;
• Bank Certificate;
• Income Tax Certificate;
• Trade License etc.

Accounting Treatment For Opening Import letter of credit

When the officer thinks fit the application to open a letter of credit, giving the following entries- creates the following charges-Table-Showing accounting treatment at the time of letter of credit opening:

The following accountings treatments are given by  different stages of import letter of credit are as following:

When import letter of credit is opened:

When letter of credit against import is opened then bank as gives guarantee on behalf on customers so customer’s liability is transferred to bankers liability.

When charges are taken:

When different charges and margin is charged by bank for import letter of credit then party a/c or current deposit account of letter of credit opening party is charged against different charges and margin on letter of credit.

1.When documents are received:

Accounting Treatment For Opening Import letter of credit

When documents is received than the amount provided to importer is debited under PAD account and head office and other charges as income is credited and at the same time as documents is received so MBL liability against that documentary credit is decreased and importers liability is increased.

1.When payment is made:

When payment is made by bank then importer account i.e. party a/c and margin on letter of credit account is debited PAD account is credited.

Payment Against Document

PAD procedure after getting all documents from the exporter of importer as evidence of exporting goods. Documents required for PAD is mentioned below:

• Original (Non-negotiable) bill of Leading.
• Commercial Invoice.
• Certificate of Insurance.
• Certificate of Origin.
• Bill of exchange.
• Pre-shipment Inspection Certificate.
• Packing List.
• Clean Report of Findings (CRF).

Examination of PAD Documents:

Scrutinizing documents is very important for the MBL. As after examining all the documents the MBL will make payment to the negotiating bank. So any mistake in the examination process may cost MBL.

Loan against Trust Receipt (LTR):

Payment Against Document

Under this LTR, Loan is allowed by MBL only to first class importers. Here only on the basis of trust without paying MBL anything or a partial amount, the importer takes the documents. Then importer is allowed 60-90 days time to make payment.