AMNS executes transaction with ICICI Bank

MUMBAI: AMNS India on Sunday said its has executed "a paperless bill discounting transaction" in partnership with ICICI Bank.

Gujarat-based ?ArcelorMittal Nippon Steel (AMNS) India said it is first such transaction in India.

?The end-to-end electronic transaction, comprising digital issuance of letter of credit (LC), advisory and presentment of documents took place among AMNS India, its Baroda-based customer Vijay Tanks and ICICI Bank, the steel maker said in a statement.

"In a step forward for digitising trade payments, AMNS India today (Sunday) announced it has executed the country's first domestic paperless bill discounting transaction in partnership with ICICI Bank," it said.

ICICI Bank was the intermediary between the buyer and seller, the statement said. The bank's branch in Baroda, Gujarat, issued an LC for the buyer Vijay Tanks, while its branch at Hazira advised and negotiated for the seller AMNS India, it said. The terms of the LC required AMNS India to digitally present the documents to ICICI Bank evidencing the transaction flow.

In the statement, AMNS India Deputy Chief Financial Officer Amit Harlalka said it is a positive step towards enabling the digitisation of trade payments and provides for better working capital efficiency for the company and trade partners. "This transaction is seen by many in banking and business as a prelude to the blockchain, a technology even more robust in security, identity and transparency, and which is now being widely studied for possible adoption by Indian banks," he said.