Norms for setting up and operating ITFS to provide trade finance at IFSCs
New Delhi, Jul 14 (KNN) The International Financial Services Centres Authority (IFSCA) has released a framework for setting up and operating an international trade finance services platform (ITFS) to provide trade finance services at international financial services centres (IFSCs).
''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 ITFS,'' an official statement said on Monday.
This will help in their ability to convert their trade receivables into liquid funds and to obtain short-term funding, IFSCA added.
"This framework will provide an opportunity to the participants to avail trade finance facilities for trade transactions such as 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 and any other eligible product, on the ITFS platform," it said.
The IFSCA has been set up under vide IFSCA Act, 2019 to develop and regulate the financial products, financial services and financial institutions in the International Financial Services Centres (IFSCs).