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Bank Payment Obligation And How It Works
Posted: Sat Oct 04, 2014 9:42 pm
by hareesha86
Can anyone explain a overview of Bank Payment Obligation and how does it works?
BPO
Posted: Sat Oct 11, 2014 11:55 pm
by picant
Hi Pal,
it is a new product by the ICC and SWIFT, Banks and Companies may insert their recevable in electronic form, if the data match
the payment will occurr. This is a simple answer to a big question, try to find details in Internet.
IMHO , for many years it will be something for very few operators.
Other comments appreciated
Ciao
BPO
Posted: Wed Oct 15, 2014 1:31 am
by M.A.Chowdhury
It is a secured product of open A/C and has much similarities with LC.
.
First applicant bank input contract data to TMA (Transaction Matching Application)
Then, beneficiary's bank also imput similar data to TMA.
A baseline then established and beneficiary's bank send Baseline match report to TMA and same report is forwarded to applicant bank. When baseline is established, applicant bank's irrevocable undertaking also established.
After submission of documents, beneficiary's bank submit the data to TMA. If the data match with the baseline, the BPO becomes due.