General Knowledge · Banking and Finance
Consider the following statements: Statement 1: The back office role in Trade Finance involves the meticulous scrutiny of documents under Letters of Credit (LC) to ensure they strictly comply with the terms and conditions of the credit as well as the UCPDC 600 guidelines issued by the ICC. Statement 2: When a bank issues a Bank Guarantee (BG), the back office must ensure that the guarantee is entered into the SFMS (Structured Financial Messaging System) to prevent the issuance of 'Paper Guarantees' which have been a source of financial fraud. Statement 3: In Export Finance, the back office is responsible for tracking Export Bill Realization through the EDPMS of the RBI to ensure foreign exchange proceeds are repatriated within the timeframe allowed under FEMA. Which of the statements are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Statement 1 and 3 are correct but Statement 2 is incorrect.
- 2Only Statement 2 is correct.
- 3Statement 1, 2, and 3 are correct.✓
- 4All statements are incorrect.
Correct answer
Statement 1, 2, and 3 are correct.
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