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Tuesday Talk Series " Session XXIVth"

“TUESDAY TALK SERIES” at JIMS Rohini, Sector-5 Campus

Session: XXIVth
Key Resource Person: 
Dr.  Ashok Bhagat- Dean International Business, JIMS, Rohini, Sector-5
Jagan Institute of Management Studies, Sector 5, Rohini, New Delhi organized “TUESDAY TALK SERIES – XXIVth” on Tuesday, 27th August, 2013 at its campus. The continuous faculty interaction programme was an initiative by the faculty members to present their research papers or any other similar activity with JIMS fraternity. The moderator for the session was Dr. Sumesh Raizada- Dean Retail Management and the resource person for the presentation was Dr.  Ashok Bhagat- Dean International Business, JIMS.

The JIMS faculty and other staff members from various departments attended the presentation. 

Dr. Bhagat presented the paper on “Bank payment obligations vital for international business. The presentation highlighted the aspect of new Uniform Rules for Bank Payment Obligations (URBPO) that will provide an alternative means of settlement of international transactions comparing the same with the existing payment mechanisms and also how efficient/useful it will be in the Indian context.

In his presentation he explained the types of payment transactions i.e. guaranteed (documentary letters of credit and avalisation) and without guaranteed. He further defined that a  BPO  is an irrevocable undertaking given by one bank ( Obligor Bank)to the another (Recipient  Bank )  that payment  will be made on a  SPECIFIED  DATE  after a  SPECIFIED EVENT has  taken place . The bank payment obligation was defined when the  obligor bank is irrevocably bound to pay to the recipient bank according to the terms of the  established TSU baseline if there are no mismatches or all involved parties  accept the mismatches.  BPO will decide for payment of documents and not the documents will decide for payment
Also, there occurred some challenges for the seller in BPO i.e. raising finance for the  transaction  and the additional risk in case of non - payment as he can not take control of goods. This is because this system requires  the documents to be sent directly to the  buyer.

Overall, the presentation was interactive and educative where there was something new to be learned and was appreciated by the JIMS fraternity.