The International Financial Services Centres Authority (IFSCA) on Monday issued a framework for setting up and operating the International Trade Finance Services platform (ITFS). The platform will provide trade finance services at International Financial Services Centres (IFSCs). The complete text of the framework can be accessed on the IFSCA website.
The International Financial Services Centres Authority (IFSCA) had been established through IFSCA Act, 2019, to develop and regulate financial products, financial services and financial institutions in the International Financial Services Centres (IFSCs).
The IFSCA issued framework will enable exporters and importers to avail various types of trade finance facilities at competitive terms. They would be able to use these facilities for their international trade transactions through a dedicated electronic platform i.e the ITFS.
This will help the traders to convert trade receivables into liquid funds and obtain short-term funding, a government statement said.
This framework will also provide an opportunity to the participants to avail trade finance facilities for transactions on the ITFS platform. These facilities include -- 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.
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