IFSCA is Setting up & Operating ITFS to Provide Trade Finance
As per the latest reports on July 13th, 2021, a framework has been delivered by The International Financial Services Centres Authority (IFSCA) to establish & operate an international trade finance services platform (ITFS) with an agenda to facilitate trade finance services at international financial services centers (IFSCs).
Under the assistance of this aforesaid framework issued by IFSCA, the worldwide importers & exporters will be able to apply for various types of suitable trade finance instruments at competitive terms for their global trade transactions through an advanced electronic channel ITFS, according to the Finance Ministry.
This will also further boost their capability to liquidate their trade receivables and to get short-term finance, as per IFSCA.
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It further explained, “This electronic channel will give a chance to the members to get trade finance facilities for their various trade transactions including export invoice trade financing, reverse trade financing, bill discounting under letters of credit, supply chain finance for suppliers overseas, export credit (packing credit), insurance/credit guarantee, factoring, and some other qualified item, on the ITFS channel. ”
IFSCA was set up in April last year under the International Financial Services Centers Authority Act, 2019. It is settled at GIFT City, Gandhinagar.
IFSCA is a merged organization handling expansion and management of financial instruments, financial services, and financial service providers at the International Financial Services Centre (IFSC) in India. At the present, GIFT IFSC is the initial international financial services center in India.
Before the foundation of IFSCA, the domestic financial controller's RBI, Sebi, PFRDA, and IRDAI managed the business in IFSC.
The principal agenda of IFSCA is to create a solid worldwide interface and concentrate on the necessities of the Indian economy as well as to aid as a global financial channel for the whole district and the worldwide economy as a whole.