The International Financial Services Centres Authority vide its press release dated 9th July 2021 has issued a framework for Setting up and operating International Trade Finance Services Platform (‘ITFS’) for providing Trade Finance Services at International Financial Services Centres (‘IFSCs’).
The framework shall apply to the entities seeking permission to set up ITFS under this framework and the parties to the ITFS shall be permitted to undertake or participate in International Trade Finance related activities which, inter-alia, includes Export Invoice Trade Financing, Reverse Trade Financing, Bill discounting under Letter of Credit, Supply Chain Finance for Exporters, Export Credit (Packing Credit), Insurance/Credit Guarantee, Factoring system and any other trade product.
The framework will enable Exporters and Importers to avail various types of trade finance facilities at competitive terms, for their international trade transactions through a dedicated electronic platform viz, ITFS. This will help in their ability to convert their trade receivables into liquid funds and to obtain short term funding.
