Gujarat-based ArcelorMittal Nippon Steel (AMNS) India said on Sunday it has executed India’s very first “paperless bill discounting transaction” in partnership with ICICI Bank.
“In a step forward for digitising trade payments, AMNS India has executed the country’s first domestic paperless bill discounting transaction,” AMNS India said in a statement, adding that ICICI Bank acted as an intermediary between the the seller and the buyer, the steel maker’s Baroda-based customer Vijay Tanks.
The statement also quoted AMNS India’s deputy chief financial officer Amit Harlalka as saying that the move is a “positive step towards enabling the digitisation of trade payments” and that it “provides for better working capital efficiency for the company and trade partners.”
The transaction, end-to-end electronic in nature, comprising digital issuance of letter of credit (LC), advisory and presentation of documents, took place among AMNS India, its customer, and ICICI Bank, the statement noted. ICICI Bank’s branch in Baroda issued the LC to the buyer, Vijay Tanks, while its Hazira, Surat-based branch negotiated on behalf of the seller, AMNS India.
As evidence of the transaction flow, AMNS India was required to digitally present the documents to ICICI Bank, as required under terms of the LC.
“We are glad to have partnered with AMNS India for India’s first paperless bill transaction. We continue to play a pioneering role in re-imagining digital and cashless payments in India,” ICICI Bank head (transaction banking and SME group) Ajay Gupta said, welcoming the transaction.
AMNS India is a joint venture between ArcelorMittal, the world’s leading steel and mining company with a presence in more than 60 countries, and Japan’s largest steel producer Nippon Steel.
(With PTI inputs)