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