YES BANK: First Indian Bank on RXIL’s ITFS Platform

Yes Bank has become the first Indian bank to execute an export finance transaction on the International Trade Financing Services Platform (ITFS) of RXIL Global IFSC Limited (RXIL), a leading cross-border fintech company registered under the International Financial Services Centres Authority (IFSCA) . This strategic partnership facilitates arranging credit for exporters and importers from both Indian and global institutions through factoring, forfaiting, and other trade financing services at competitive pricing with quick turnaround using a digital platform, the bank said in a press release .

What are factoring and forfaiting?

Factoring is a financial transaction in which an exporter sells its receivables to a third party (a factor) at a discount, while forfaiting is a form of export financing in which an exporter sells its medium or long-term receivables to a forfaiter at a discount without recourse . These services help exporters and importers to improve their cash flow, reduce their risks, and access new markets.

Why is the ITFS platform important?

The ITFS platform, set up in IFSC, GIFT City Gujarat, is aimed at tapping global capital flows to meet India’s development needs and simultaneously provide a globally competitive financial platform for the full range of international financial services at the regional and global level . RXIL is at the forefront of driving transformative change in the cross-border trade finance landscape by leveraging technology and innovation .

How does Yes Bank benefit from this collaboration?

Yes Bank’s collaboration with RXIL is a testament to the bank’s commitment towards digitalisation and fostering cross-border business. “We strongly believe that this product is set to redefine the landscape of international trade finance and through this, the Bank reinforces its commitment to contribute and align with the Government’s aim to make India a global trade finance powerhouse,” said Ajay Rajan, Country Head – Government, Multinational & International Business, Transaction Banking & Knowledge Units at Yes Bank .