ABN Amro Bank and Correspondent Banking in India CASE STUDY SOLUTION

ABN Amro Bank and Correspondent Banking in India CASE STUDY SOLUTION

ABN AMRO bank has emerged as a major correspondent bank owing to a large network. In

India, it operates in six major cities, viz. Baroda, Chennai, Kolkata, Mumbai, New Delhi and

Pune. Being a correspondence bank, its product offerings are found primarily in the area of

trade and clearing. It is doing well in these owing to strong tie-up with local Indian banks

reaching 350 centres across the country. As a result, payments are effected speedily and

effectively.

Cash Management

The customized products in the area of cash management include cheques payable at par at all its

branches across the country, apart from traditional collection services, such as collection of

outstation/upcountry cheques drawn on other banks. ABN AMRO is a member of all major clearing

centers in the major financial centers. It has an electronic delivery system and structures multilateral

netting of cash.

Trade Services

Under trade services, the Bank offers a comprehensive range of products, such as:

1. LC reimbursement

2. Indian rupee trade payments

3. Handling documentary bills for collection

4. Bills negotiation

5. Letter of credit advising

6. Letter of credit confirmation

7. Guarantees

Examination Paper of Finance Management

4

IIBM Institute of Business Management

Treasury Services

Treasury services at ABN AMRO Bank (India) are available round-the-clock. Rupee funding at its

treasury desk is provided at competitive rates along with advice on market trends and rates. It

provides also advisory services on the request of financial institutions and corporate in the area of

regulatory, economic and financial matters including depository services.

Questions:

1. Describe the network of ABN AMRO Bank in India.

2. What role does it play for global cash management?