Step 1 - The seller and the buyer enter into a contract and agree that payment will be made on basis of a documentary collection
Step 2 - The seller ships the goods and tenders the documents to ICICI Bank (remitting bank) together with a corresponding collection order
Step 3 - ICICI Bank sends the documents along with its collection instructions to the buyer’s bank (Collecting bank)
Step 4 - The Collecting bank notifies the buyer on the arrival of documents for payment/acceptance
Step 5 - The buyer pays the amount due or accepts the draft and in turn receives the documents
Step 6 - The Collecting bank remits the amount to ICICI Bank
Step 7 - ICICI Bank credits the amount to the seller’s account