CIB Corporate Internet Banking

Introduction

Corporate Banking refers to the lending activities of a Financial Institution (such as

Banks, NBFCs etc.) for a corporate client

Retail Banking is associated in managing individual accounts for individual retail

customers and providing products and services to individual retail customers.

Corporate Clients includes Corporations, Companies (both listed and unlisted),

Partnerships, Government Institutions etc. and providing products and services to
the corporates and its customers for efficient working capital management of the
business.

Revolves around Working Capital Management of any business

Working Capital is the difference between the Current Assets and the Current
Liabilities of a business i.e. the capital that revolves around the daily operations of
the business.

In short, corporate banking involves providing alternative sources of funds for

short term

Working Capital Management

Current Liabilities

Current Assets

Accounts Payable

Cash

Short Term Debts

Inventory

Accrued Liabilities

Accounts Receivables

Other debts

Marketable securities

Prepaid Expenses

Other liquid assets

CIB - Products and Services

Cash Management

Short Term Joint Venture

Overdraft Facility

Trade Finance

Bill & Receivable Discounting

Cash Mobilizing

Leasing

Pledge Finance / Mortgage

Finance

Alternative Delivery Channels

(ADC)

Other Products which also

available in Retail Banking

Term Loans (Short/Long)

Fund Transfers / Remittances

Project Finance

Online Internet Banking

Salary Payment

Forex Management

CIB - Products and Services

Cash Management

Short Term Joint Venture

Overdraft Facility

Bill & Receivable Discounting

Import & Export Bills for

Collection

Leasing

Letters of Credit (LC)

Pledge Finance / Mortgage

Finance

Letter of Guarantee on
Shipment & Bill of Lading

Term Loans (Short/Long)

Insurance in Transit

Fund Transfers / Remittances

Cash Mobilizing

Online Internet Banking

Alternative Delivery Channels

(ADC)

Other Products which also

available in Retail Banking

Trade
Finance

Products and Services

Cash Management

Business Insurance

Corporate Premium

Foreign Exchange (FX)

Services

Point of Sale

Trade Finance

Corporate Premium

Business Bank Account

Services

Deposits

Value Added Services

Corporate Credit Cards

Merchant Acquiring Services

Card Payment Processing

e-Payment Gateway

Customer Login Page

Customer Login Attributes UserId , Passcode(RSA code changes every 60

seconds), Password(password policy).

Customer Home Page

Enquiries/Overview
Page

Instructions

Cheque Book Request

Accounts

Book Transfer

Loans

Third Party Transfer

Credit Card

Telex Transfer

Standing Order

Demand Draft

Group Accounts

Bulk Remittance

Term Deposit

Statement of Account

Interest Rates

Exchange Rates

Report

Transaction
Summary
Transaction
Reconciliation
Reports
Corporate Audit
Trial

STOP Payment

Trade Finance

Cash in Advance

Letters of Credit

Documentary
Collections

Open Account

Trade Finance

Trade involves 2 primary entities Importer and Exporter

Exporter wants payment as early as possible until which any sale is like a gift to
the importer

Importer wants to delay the payment as much as possible so as to generate

income from the sale of the imported goods

Payment types for International Transactions:

Cash in Advance

Letters of Credit

Documentary Collections

Open Account

Cash in Advance

Payment is received by the exporter prior to the export of goods (change in

ownership)

Payment is done using electronic transfers, credit cards, international cheques.

It is the least frequently used method as it creates risk for the importer in
receiving actual goods as ordered

Also, payment prior to delivery of goods create cash flow problems for the
importer

This method is mostly used:

Importer is a new customer and is not in a demanding position with the exporter

Exporter is in a commanding position and has market dominance

Letters of Credit (LC)

Amongst the most secured instruments available

to traders

LC is a commitment by a bank on behalf of the

buyer that payment will be made to the exporter
provided that the terms and conditions have
been met, as verified through the presentation of
all required documents

LC protects buyer as no payment is made until

goods are delivered as promised

Issuing bank (Importers bank) authorizes

advising bank (in exporters country) to make
payment to the beneficiary against the receipt of
stipulated documents

Importer
1
Deal
7
Transmit
s Goods
2
Open
LC

8
Transmits docs
9
Confirms
Payment

Revocable or Irrevocable LC

Confirmed LC

Special LCs

Freight
Provider

6
Transmit
s docs

LC can be:

Exporter

Issuing
Bank

5
Transmit
s docs
and
goods

4
Transmit
s LC

3
Transmit
s LC

10
Pays the
exporter

Advising
Bank

Documentary Collections (D/C)

Transaction whereby exporter

entrusts collection of payment to
exporters bank (remitting bank)
which sends documents to importers
bank importers bank (collecting
bank) with instructions of payment
Documentary collection involves use
of draft and can be:

Document against payment D/P

(payment on sight)

Document against acceptance D/A

(payment on future date)

Importer

Exporter

3
Documents
1
Deal

6
Makes
Payment as
requested
or accept
draft for
payment

8
Delivers goods
in exchange for
docs
7
Transmits
docs

2
Transmit
s goods

Freight
Provider

4
Sends
the docs
and
Instruct
to obtain
payment

5
Sends the
Documents

D/Cs are less complicated and less

expensive than LCs
Collecting
Bank

Remitting
Bank

Open Account

Here the exporter exports the goods and importer makes payment once goods
are received

Most advantageous and riskless option for importer

Riskiest option for the exporter. However, the risks can be reduced using
appropriate trade finance techniques, such as export credit insurance etc.

Trade Finance techniques which can be used:

Export Working Capital Financing

Government-Guaranteed Export Working Capital Financing

Export Credit Insurance

Export Factoring

Forfaiting

Cash Management

A/C

A/C

Book Transfer

Transfer of funds from one deposit account to another at the

same financial institution and same currency

Eliminates check clearing float i.e. the time between deposit

and clearing

2 Accounts Debit and Credit Account are involved which

cannot be same

Steps:

Book transfer request

Authorize/Confirm

Assign User for next step

Rekey confirmation

Transfer of Funds

Cash Management

Foreign Book Transfer

Transfer of funds from one deposit account to another at the

same financial institution and different currency

Eliminates check clearing float i.e. the time between deposit

and clearing

Steps:

Book transfer request

Authorize/Confirm

Assign User for next step

Rekey confirmation

A/C

A/C

Transfer of Funds

Cash Management

Telex Transfer

An electronic method of transferring funds.

Primarily for overseas wire transactions.

Commonly used in reference to CHAPS, Clearing House

Automated Payment System, transfers in the U.K. banking
system.

Steps:

Initiate Telex Transfer Create Beneficiary,

Confirmation

Rekey Confirmation

A/C

A/C

A/C

Transfer of Funds

Cash Management

Third Party Transfer Transfer to A/c in other country bank

using a third party bank in other country

Steps:

Create Beneficiary

Initiation

Confirmation

Rekey Confirmation

Cheque Book Request

Initiation No of leaves, No of books

Confirmation

Request Rekey Confirmation

Bulk Remittance

Cash Management

Enquiry of Accounts

Accounts Enquiry

Standing Orders

Exchange Rates

Interest Rates

Loans and Reports

Payments

Trade Edition

A/C

A/C

Transfer of Funds

Electronic Collections

Real Time Gross Settlement (RTGS)

National Electronic Funds Transfer (EFT / NEFT)

Electronic Clearing System (ECS)

ECS Credit e.g. Dividend, Interest, Salary Payment

ECS Debit e.g. Utility payments like electricity bills and telephone bills (ECS mandate
req)

Real Time Gross Settlement

Transfer of money from one bank to another on real time and gross basis

Fastest possible money transfer system

Settlement in real time i.e. payment is not subject to any waiting period

Gross Settlement i.e. payment is settled on one to one basis and not together

Irrevocable

Primarily for large value transaction

National Electronic Fund Transfer

Nationwide fund transfer system to facilitate transfer of funds from and to any
bank branch in the country

Uses Deferred Net settlement (DNS) concept which settles transactions in

batches

Uses concept of Centralised accounting system i.e. banks account gets

operated at one centre

Beneficiary gets credit on same day or next day depending on time of

settlement

Electronic Clearing System (ECS)

Fund transfer system to facilitate transfer of funds from and to any bank branch
in the country using services of a clearing house

There are two types ECS Credit and ECS Debit

ECS Credit is used for affording credit to large number of beneficiaries by

raising single debit to customers account e.g. dividend, interest or salary
payment

ECS Debit is used for raising debits to number of accounts by affording single
credit e.g. utility payments like electricity bills, telephone bills

Payable at Par Customer Cheques

Cheque Payable at Par means the amount mentioned in the instrument would
be payable to payee without deducting any charges when presented for
collection.

Normally used for Interest and dividend payments

Since such cheques require bulk cheque writing requirements, single file upload
facility is used by banks

Salary Payment

Corporate Salary Payment

Benefit to corporates

Efficient salary disbursal Single instruction to credit list of accounts

Upload functionality Upload list of accounts instead of individual credits

Benefit to employees

Zero balance salary account

Unparalled Access with ATM, net banking facilities, bank branches

Other services like credit cards, online shopping and bill payments

Employee reimbursement accounts as a savings account variant

Debtors Management

Receivables Management

Collection Service - Handling of cheques both local and outstation, clearing and
updating of account receivables

Receivables Invoice management, account receivables solutions, collection of

receivables through fund transfers and electronic modes such as NEFT, RTGS etc.

Advantages:

Collection cycle is reduced thereby reducing days outstanding

Reduced operational risk of fraud and loss of cheques

Automated Bank Reconciliation

Local clearing solutions

Extensive network of branches that provide clients with local clearing of instruments

Collection reports provide clients with information on instruments deposited at each locations

Outstation clearing solutions

Correspondent bank relationships with regional and foreign banks covering thousands of
locations for efficient collection of regional and foreign cheques

International wire Transfer

International wire transfers are electronic fund transfers considered safest to

transfer funds to other banks or countries

Banks use SWIFT messaging (Society for Worldwide Interbank Financial

Telecommunications) to verify and process financial messages, such as transfers

Banks will need a reciprocal account in the overseas country

Individuals not having account with major banks can user other transfer methods
such as western union transfers which can be done without an account with add fee

Steps:

Fill the account details and fields such as Bank Identifier Code (BIC), International Bank
Account Number (IBAN),contact information of the payee in the wire transfer form

A Money Transfer Control Number (MTCN) is provided which needs to be used by the
recipient

The message is sent through the SWIFT network for the wire transfer

For frequent wire transfers, Personal Identification Number (PIN) code is provided by the
bank

Factoring

Agreement in which receivables arising out of sale of goods/services are sold by the firm
to a factor (financial intermediary) due to which the title of goods and services passes to
the factor

The factor becomes responsible for all credit control, sales accounting, debt collection
from the buyers.

Steps:

1. Seller enters in to a factoring contract with factor

2. Buyer negotiates the terms of purchase with seller
and receives deliver of goods with invoice and

Buye
r

instructions to pay the factor on due date

3. Seller assigns the claims to factor due to which sellers

customers becomes a debtor for the factor
4. Buyer pays the factor on due date and seller receives Factor payment
of part (75% to 80%) payment of Invoice value on selling the receivable
and balance on due date after deduction of factor charges

Factor

Selle
r

Functions of Factor

Maintenance of Sales Ledger Open invoices O/S, buyer wise outstanding

amounts

Collection of Accounts Receivable on behalf of seller Reduces cost of

collection, effort and time for the seller to focus on operational activities

Financing facility of trade debts Factor pays 75-80% of the receivable value in
advance thereby purchasing book debts of clients

Assumption of Credit Risk and Credit Protection Factor assumes the risk of
default in payment by buyer and able to provide good advice to seller

Provision of advisory services to clients such as buyers perception of client

deliverable, audit, invoicing etc.

Forex Services offered by Banks

Foreign Currency Travellers Cheques

Deposit of Foreign Currency Cheques

Foreign Currency Cash

Foreign Currency Demand Drafts

Remittances

Cash to Master

Advance Remittance

Direct Remittance

Import Collection

Letters of Credit

Export Collection

Export Advance Payment

Miscellaneous Outward Remittances

Corporate Deposits Products

Current Accounts

Fixed Deposits

Certificates of Deposits

Current Account, Savings Account

Current Accounts

Current accounts are used by companies or businessman who have high number of
regular transactions

Such accounts provide no or very less interest on the deposits.

It requires higher minimum balance to be maintained as compared to savings account

There is no restriction on the number of deposits and withdrawals as long as there are
funds in the account

Facilities such as overdraft facility are provided on such accounts.

Features such as payments by cheques, multi-location fund transfer, electronic funds

transfer and features required by corporates for business operations are also provided

Certificate of Deposits

Negotiable money market instrument

Issued in dematerialised form or as Promissory Note against funds deposited at a

bank or other eligible financial institution for a specified time period.

Banks have the freedom to issue CDs depending on funding requirements.

Minimum amount of a CD should be Rs.1 lakh, i.e., the minimum deposit that could be
accepted from a single subscriber should not be less than Rs.1 lakh

CDs can be issued to individuals, corporations, companies (including banks and PDs),
trusts, funds, associations, etc.

The maturity period of CDs issued by banks should not be less than 7 days and not
more than one year, from the date of issue.

CDs are transferable and the physical certificates may be presented for payment by
the last holder.

Current Account Savings Account

(CASA)
Combination of both Current and Saving Account

Current account portion pays no or very low interest while Savings account portion
pays average interest

Help Functions

Demo within the application through HELP function

Provide with role-based help manual

User friendly icons "?" to direct to respective HELP function

FAQ on all pages

Search option to search for a help

Browser Compatibility Issues

Support various browsers including Android, IOS, Windows, Chrome, Internet

Explorer, Firefox, Safari, etc.

Continuous amendments in tune with the industry changes

FAQ should have a section on to help user to fix the browser compatibility issues

Option to download the latest version

Change of user rights

Notification to users on change of user rights

Standard formats and content

Switch on and off of notification

No changes to existing notifications

Communication on the New options and features enabled

Corporate Admin

Customer On-boarding - Creation of Corporate Administrator Profile having all

access

Corp Admin module should be an Optional Functionality

Rights attached to Corporate Admin

Rights not to be given to Corporate Admin

Linking newly created accounts by Corp Admin

Updating Corporate Admin profile

Number of Corporate Admin profile per customer

Corporate wise User Role Report

Audit Log and Report of Corp Admin tasks

Standard Look and Feel

Standard Look and Feel

Miscellaneous Changes to the existing CIB UI

The home page for the enquiry customer should be completely redesigned to show
only the account list

Dynamic pages

Credit Card Payments

Credit card outstanding balance and Statement

Credit card payments

Partial credit card payment

Masking of Credit Card Numbers

Pay card statement

Pay card statement

Direct upload of new pay card file by corporate

Attachment to transaction

Attachment to transactions

Access to view the attachments

Size limitation and Retention period

Disclaimer on Banks responsibility on the attachments

Attachment to bulk payment transaction

Standing Instructions

Standing Instruction

Standing order

Transfer types through Standing Instructions

Details to be captured

Standing Instructions

Standing Instruction

Standing order

Transfer types through Standing Instructions

Details to be captured

Through Workflow

Closure of Standing instruction

Masking of salary transaction amount

Masking of salary transaction amount

Manual Authorisation

Manual Authorisation

New transaction status queue for corporate users

Dual Authorisation Limit

User setup for C&P and FTU team users

Transaction Posting

One physical copy for each transaction. i.e. individual approval for each transaction

Both Manual and/or online approval

Optional Functionality

Option to C&P and FTU team to close the transaction if approval file not received

Search and Sort option for C&P and FTU team

MIS for C&P and FTU team

Utility Payments

Mobile Communications Payments

Ooredoo Payments

Qtel

Utility Payment - Register/unregister

Support Utility Payment

Full or partial payment

Payment at Customer level or Service Account number level

Debit before confirmation

Utility payment using credit cards and account debits

Bulk utility payment

Scheduled utility payment

Utility Payment Transaction Summary

Utility Payments only in online mode

Utility Payments under Report Manager - Transaction Summary

Beneficiary auto population using IBAN

Beneficiary auto population using IBAN

No option to enter manually

Instructions for wrong input

In Bulk Payments only validated transactions to be processed

Cross currency with Debit and Credit (Payment) amount

Credit and Transfer currency

Debit amount and Credit (Payment) amount

Automation of Transaction Queries and Reversal

Amendments to the transactions

Direct routing of queries from AML, FTU and FTI team

Queries and Response Summary

Reversal of Bulk salary payment and Bulk Payment, where the beneficiary is a CB
customer

3D Secure - OTP to Mobile for credit card transaction

OTP for all transactions on CIB

Customer on-boarding with lesser iterations (Screen

navigations)

Amendments to the transactions

Direct routing of queries from AML, FTU and FTI team

Queries and Response Summary

Reversal of Bulk salary payment and Bulk Payment, where the beneficiary is a CB
customer

Money Transfer

International Money Transfer

Local Money Transfer