As the current COVID-19 pandemic has pushed the banking sector toward digitized trade for corporate customers, DBS Bank India has introduced a paperless proposition for the financing of domestic invoices by buyers and sellers.
The bank now digitally validates the Electronic Way or eWay Bill (i.e., proof of movement of goods) to establish the genuineness of underlying trade transactions. The adoption of this approach has enabled DBS to process transactions quicker without the need to obtain underlying physical documents.
With this method, DBS India conducted its very first paperless domestic trade financing transaction with Lincon Polymers Pvt. Ltd., marking a significant milestone – an industry first – in the bank’s digital transformation journey.
DBS India has effectively eliminated the need for cumbersome documentation, making the entire financing journey paperless and seamless. Customers can also share details of their transactions through IDEAL (DBS’ digital banking platform that enables companies to initiate, monitor, and secure business transactions). The data is then validated against the Government-enabled eWay bill portal via GSTN after receiving a one-time authentication from the customer. The bank has partnered with Rezofin, an online invoice financing platform for this process.
Following the merger of Lakshmi Vilas Bank (LVB) with DBS Bank India, the bank is well-positioned to offer this solution to the country’s large SME base, which has traditionally grappled with significant documentation for their financing requirements.
According to Divyesh Dalal, MD & Head of Global Transaction Services, DBS Bank India, “We have been leveraging our digital capabilities to design intelligent solutions that benefit time-strapped enterprise owners. Using the eWay bill verification, we’ve helped clients to reduce the time taken for financing an invoice. The solution is a significant step towards making the underlying trade finance process truly digital and paperless, which has historically been document-intensive.”
CA Anish Shah, Finance Manager from Lincon Polymers Pvt. Ltd., saw the convenience of the eWay paperless transactions with DBS Bank India. “The domestic financing using E-waybill verification is a unique proposition by the bank. By being digital and paperless, the solution enables us to raise financing requests seamlessly. It has eliminated the need to send physical documents, which needed a dedicated resource to manage transactions. We are happy to have partnered with DBS as they understand our requirements and have extended a solution that enhances efficiency.”
DBS remains proactive in identifying customer needs and creating customised banking solutions for large enterprises and SMEs to meet their end-to-end requirements. Last year, DBS introduced a completely digital and innovative payments solution in partnership with Transport Corporation of India Limited (TCIL). The partnership enabled truck drivers to make real-time payments through the DBS RAPID solution.
Recently, the bank partnered with ODeX to introduce ODeX Pay Later Solutions powered by DBS- a hassle-free credit solution for freight forwarders. DBS has also launched real-time online tracking for cross-border collections for businesses in India in partnership with SWIFT Global Payments Innovation (gpi).
