Post on 04-Jan-2017
Citi Commercial Bank Newsletter
Tushar Vikram
Dear Client,
It’s my pleasure to bring to you the latest edition of the Citi Commercial Bank quarterly newsletter. The newsletter is a
summary of recent regulatory developments, client event updates and showcases our key products and client case studies.
The last quarter has been an exciting one for us and I am happy to announce that Citibank took home multiple awards.
I am pleased to inform that Citi India has been awarded the Best Service Provider in Risk Management at the Asset
Triple A Treasury, Trade and Risk Management Awards 2015. Also, Citi India was recognized as the winner for Enhanced
Customer Experience at the IBA Banking Technology Awards 2014-15. Most recently, Citi received the Golden BRICS
rdAward, at the 3 annual ‘Doing Business with the BRICS’ Conference in Washington DC, recognizing us as one of the top
companies doing business in BRIC countries.
These accolades are a tribute to your active support and confidence vested in our teams to deliver remarkable, service
and products to suit your specific needs.
We look forward to continue our work as your trusted partner and commit to adding more value to your business. I do
hope you will find this edition interesting and look forward to your suggestions and feedback.
Tushar Vikram
Head - Commercial Bank,
Citibank India
Warm regards,
Product Showcase
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How it works?
Smart Recon is connected to customers via secure channels. On sharing the distributor details and
open invoice details, Citi initiates a Smart Recon setup for you. Our processing engine browses the
invoice information, sorts and sends out interactive PDFs with complete invoice details to each of your
distributors.
Unique features
Ÿ A user-friendly & interactive interface based in PDF format for your distributors to make remittances
to you using multiple modes with a unique transaction reference generated.
Ÿ The product platform enhances information sharing and collection capabilities, while providing
reconciliation support at both ends of the transaction.
What is Citi Smart Recon?
An interactive & integrated collections solution powered with hassle-free reconciliation & tracking
features which allow you to streamline inflows from multiple distributors.
Smart Recon - a smart offering which helps your company to automate account receivables processes,
garner remittance information and reconcile collections against multiple invoices.
Citi Smart Recon
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Product Showcase
Benefits for You
Ÿ Eliminates nuances of collecting remittance data - now collected from distributors
Ÿ Revitalize your supply chain with product bundling on credit financing
Ÿ Instantly update distributor database anytime using secure information channels
Ÿ Receive auto reconciled reports and processing updates
Benefits for your Distributors
Ÿ Get pre-populated interactive PDF on registered email with complete invoice details and due date
Ÿ Flexibility to allow partial remittance using multiple modes
Ÿ Receive alerts on deposits
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Product Showcase
Citi Smart Recon Process Flow
A brief schematic on the various features offered to customers and distributors:
Customers share specific distributor data & invoice
information with Citi via a secure delivery channel.
Citi stores this information on its Smart Recon
platform.
Distributor
Profile
Open Invoices
Customers
Customer
ERP System Citi Smart
Recon
Distributors receive interactive PDF as an email
attachment and choose what and when to pay
amongst a list of invoices.
Distributorsverify
information tosubmit and
receive depositslip
Distributors
Distributors
choose to
pay and clear
invoices on
Citi Smart
Recon
Smart Recon stores the receivables information,
compiles and generates an interactive PDF to be
delivered to the distributors directly via email.
Delivers PDF
as an Email
attachment
Information Processing
Compiles
information
into pre-
populated
Citi Smart
Recon
Smart Recon scrutinizes remittance data against the
invoice information and pushes reports to customers
and reminders to distributors for due payments.
Remittance Processing
Send Reports to customer
& Reminder
to Distributors
Receive open
invoices
& actual
remittance
data
Citi Smart
Recon
Client Case Study
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Signode India Ltd
About the client:
Background:
Signode India is a company
based out of Hyderabad engaged in the
business of manufacture of steel products used
for bundling, packaging and strapping steel in
the process of transportation and logistics. The
company has a strong presence in the industrial
packaging market and is well known amongst
steel companies and steel distributors alike.
One of the key raw materials for
the company is steel and the procurement plan
for this is laid out at the beginning of every year.
The company had been procuring steel from
various large steel companies in India. Most of
the contracts between the steel majors and
Signode are long term in nature and cover
multiple shipments over a finite period of time.
Client Asks: The management of the company
was keen to improve cash flows of the company
and had been thinking of moving to payment at
sight after receipt of goods. However the
company was wary of a potential increase in
prices which could disturb their margins as
their customers are also the same steel
suppliers who would not be willing to take any
price increase by Signode.
Their businesses being intertwined, there was
a need to formulate a procurement strategy
that would not impact the manufacturing
process and margins. The company sought
advice from Citi on extending their payables
cycle through a trade structure.
Client Case Study
Citi’s solution: Given that Signode regularly
procures steel from 3 or 4 large suppliers in
India, we suggested revolving LC issuance in
favour of these suppliers who in turn could
discount the instrument with their bankers.
Moreover, a revolving LC would help in reducing
the clerical work at Signode’s back end which
would otherwise involve opening multiple LC’s,
tracking their maturity dates, matching
procurement plans with delivery schedules and
delivery dates of material.
We explained the benefits of this structure
where in the LC could get reinstated to its
original amount once its original value had
been exhausted (i.e. upon delivery of goods of
that value). Our solution helped the company
have a single instrument covering multiple
shipments over a longer period of time.
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Client Events
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Knowledge Sharing Session for Intermediaries
Venue : Courtyard Marriott, Pune
Dateth: 21 May, 2015
Amit Chhawchharia, Deputy Head –
Corporate Sales & Structuring, shared a
perspective on the Macro Economy with
specific insights on GDP forecasts, current
political environment and financial markets.
The final session on M&A Escrow Structures
was conducted by Sumit Khanna, Head –
Issuer Services Sales covering unique
escrow structures and case studies. The
session concluded with a thank you address
from Anand Panda, Intermediaries Strategy
Head. This Session further established Citi
India as a thought leader amongst
intermediaries, which is a strategic coverage
area for CCB.
All the speakers took some time out at the
end of their respective sessions to interact
with the participants and answer their
queries. The workshop concluded with
cocktails and dinner at the venue.
Citi Commercial Bank and Citi Corporate
Sales & Structuring jointly hosted a
Knowledge Sharing Session in Pune,
intermediaries including Law and Chartered
Accountancy Firms. This was a first of its kind
session conducted by any bank in Pune with
focus on intermediaries. The event saw a
good turnout of around 25 esteemed guests
from firms like AZB Partners, E&Y, PWC, SKP,
etc and a few prospects.
Leena Aich, Regional Head – Liabilities, West
welcomed the participants and gave an
introduction to Citibank India as well as Citi
Commercial Bank, which was followed by an
engaging session on FEMA – Regulations &
Reporting by Ritesh Gorewar, FTU Regulatory
Reporting – Capital Account Transaction.
Client Events
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Cross Company Client Forum
Venue : Courtyard Marriott, Gurgaon
Dateth: 20 March, 2015
Theme : Go Digital & Save Money – Leveraging the digital marketplace
Founder, Power2SME.com. While, Mr. Ranjeet
introduced the attendees to MMT’s recently
launched B2B Corporate ticketing platform,
Mr. Narayan highlighted the features offered
by Power2SME’s procurement platform,
which caters to SMEs in the manufacturing
sector. The attendees took away several tips
for effectively leveraging digital technology
for delivering efficiency. The interactive
speaker session was followed by a networking
dinner at the venue.
Citi Commercial Bank - India, organized a
speaker series on the theme of ‘Go Digital &
Save Money – Leveraging the digital
marketplace’ in association with Make My Trip
and Power2SME.com. The event was attended
by select clients of each host, who were
enthused to know about cost save
opportunities through increased digitization
across banking, travel and procurement. The
speakers included Mr. Tushar Vikram, MD and
Country Head, CCB India; Mr. Ranjeet Oak,
Sr. Vice President and Head of Flights Business,
Make My Trip; and Mr. R Narayan, CEO and
Key Regulatory Updates
The key regulatory updates during the period November, 2014 to February, 2015 are as follows:
Exports - Realization Period
Ref: RBI Circular A P (DIR) 37 dated November 20, 2014
RBI has clarified that the period of realization for exports is 9 months for all exports. This includes exports
by SEZ units, Status Holder Exporters, EOUs, and units in EHTPs, STPs and BTPs.
A1 forms for Imports: Dispensation
Ref: RBI Circular A P (DIR) 76 dated February 12, 2015
RBI has dispensed with the requirement of importers submitting A1 forms for imports into India, subject to
AD Banks obtaining all requisite details from importers.
Export Advances: Reporting to RBI
Ref: RBI Circular A P (DIR) 74 dated February 09, 2015
In a step towards tracking and reducing the number of outstanding export advances, AD Banks have been
directed to report export advance cases (outstanding beyond the stipulated period) to RBI on a quarterly basis.
External Commercial Borrowings (ECB) changes – Simplification of Procedure
Ref: RBI Circular A P (DIR) 64 dated January 23, 2015
Under revised ECB guidelines, ADs may now approve all cases of
Ÿ Changes in draw-down / repayment schedules, including changes in maturity period and all-in cost
Ÿ Reduction in ECB amounts, irrespective of number of occasions
Ÿ Increase in all-in cost, irrespective of number of occasions subject to the revised terms conforming to
ECB guidelines and carried out during the tenor of the ECB.
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Disclaimer:
Nothing in this News Letter is an offer, invitation to offer, commitment or agreement on the part of Citibank or on the part
of any Citibank entity, including to prepare, negotiate, execute or deliver any product/s, service/s, arrangement/s,
lending or subscription and does not give rise to any liability or obligation on the part of any Citigroup entity. Not all
products and services are necessarily applicable to all prospects / customers or available at all locations or at all times.
All products and services are subject to the provisions of the applicable laws and regulations and Terms and Conditions
applicable from time to time. Availability and issuance of products and/or services is also subject to, among other factors,
where relevant, such due diligence as may be required by Citibank, an offer being made by Citibank and an acceptance of
that offer, internal approvals and external approvals (if any) and the customer meeting regulatory as well as Citibank's
internal policy requirements. This News Letter is merely descriptive of various products that are currently available.
Terms and Conditions, without limitation, the nature of products and services, rates operational particulars etc., may be
modified or supplemented by Citibank for its products / services in its sole discretion at any time and from time to time
including during the course of a due diligence and/or credit approval process or as a result of changes in market or
economic or other relevant conditions or criteria otherwise (including the absence of any material adverse change in the
financial markets or in the financial condition, operations or prospects of relevant persons).
For more information on the awards, please visit www.dnb.co.in, www.cii.in, www.paulwriter.com, www.thesundaystandard.com
and Global Finance (www.gfmag.com).
Prior to availing of any products or services or entering into any transaction including a borrowing, subscription or
Investment ("Transaction/s"), you should determine, without reliance upon Citibank or its affiliates, the economic risks
and merits (and independently determine that you are able to assume these risks), as well as the legal, tax and
accounting characterizations and consequences of any such transaction. Please note that neither Citibank nor any other
Citigroup entity is in the business of providing legal, tax or accounting advice.
All products and services are at the sole discretion of Citibank and subject to RBI / FEMA / SEBI / Other regulatory
guidelines issued from time-to-time.
Citibank and Citigroup entities work within the regulatory framework of India and US.
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