ArcelorMittal Nippon Steel (AM/NS) India, an integrated flat carbon steel producer, in partnership with ICICI (Industrial Credit and Investment Corporation of India) Bank, executed India’s 1st digitised bill discounting transaction.
- The end-to-end electronic transaction was held between AMNS India (Seller), Vijay Tanks (Buyer), with ICICI Bank as an intermediary between the buyer and seller.
- The transaction includes the digital issuance of a letter of credit (LC), advisory, and presentation of documents.
i.ICICI Bank’s branch in Baroda, Gujarat, issued an LC for the buyer Vijay Tanks, while its branch at Hazira, Gujarat advised and negotiated for the seller AMNS India.
ii.As per the terms of the LC, AMNS India was required to present the documents digitally to ICICI Bank evidencing the transaction flow.
iii.This transaction is done through blockchain technology, which is more robust in security, identity and transparency.
iv.Benefits: The digital transaction overcomes the problem that are held under paper-based trades, in which physical goods at times arrive before their supporting documents, leading to corporates incurring demurrage charges. It also enables greater velocity of trades at a lower cost.
Recent Related News:
In collaboration with the National Payments Corporation of India (NPCI), ICICI (Industrial Credit and Investment Corporation of India) Bank has launched a facility for linking a Unified Payments Interface (UPI) ID with its digital wallet, ‘Pockets’ and became the 1st one in the industry to link e-wallet with UPI Network.
About ArcelorMittal Nippon Steel (AM/NS) India:
It is a joint venture between ArcelorMittal and Nippon Steel.
Headquarters – Surat, Gujarat
CEO – Dilip Oommen
About ICICI Bank:
Establishment – 1955(Incorporated in 1994)
Headquarters – Mumbai, Maharashtra
MD& CEO – Sandeep Bakhshi
Tagline – Hum hai na, Khayal Apka