Letter of Guarantee Flow
Letter of Guarantee (LG) is a promise by the bank made on behalf of the Applicant (Business PSU user) to the Beneficiary (LG requestor) that bank is in bound to make payments without any delay when bank receives the demand within the terms of LG.
In the conformance portal we are going to implement the above use case, where the Letter of Guarantee request will be initiated by the LG requestor which is PSU2 user.
Following are the steps in the process flow for the above scenario.
1. The bank admin will create a user with LG requestor user permissions and LG requestor user needs to perform two factor authentication and email verification to login to the portal.
2. After login, LG requestor user can create a new LG while providing all the required details.
Beneficiary Details
Guarantee Details
- The LG requestor can either submit the request to the applicant (Business PSU 1 user) or save it as draft and then assign to the applicant later.
- Once it is created, the portal will pick up the applicant email and send the notification mail to the applicant stating that new LG request has been assigned.
LOG assigned mail
- LG requestor will be able to revoke the submitted LG request if that LG request has not yet been submitted to the bank for processing. A notification mail will be sent to the applicant stating that the LG request assigned to them has been revoked by the LG requestor.
Revoke mail
- The LG requests which are created by the LG requestor will be displayed in the overview page with different statuses.
- Requested - LG is requested by the LG requestor
- Draft - LG is saved as draft by the LG requestor
- Revoked - LG is revoked by the LG requestor
- Rejected by Business - LG is rejected by the PSU 1 user
- Awaiting Issuance - LG is submitted by the PSU 1 user to the bank
- Approved by Bank - LG is generated by the bank
- Rejected by Bank - LG is rejected by the bank
3. When the LG request is created, the corresponding applicant (Business PSU 1) user receives an email notification stating that new LG request is assigned to them. With the link present in the email, the user will be redirected to the conformance portal landing page.
4. When PSU 1 user logs into the portal, list of assigned LG requests will be displayed in the overview page. The available LG request status in the PSU1 user overview screen is as follows
- Requested - LG is requested by the LG requestor
- Draft - LG is saved as draft by the PSU 1 user
- Revoked - LG is revoked by the LG requestor
- Rejected by Business - LG is rejected by the PSU 1 user
- Awaiting Issuance - LG is submitted by the PSU 1 user to the bank
- Approved by Bank - LG is generated by the bank
- Rejected by Bank - LG is rejected by the bank
5. The PSU 1 user can decide whether to reject the LG request or to submit it to the bank. The user can reject it by clicking on 'Reject' button which is present in the 'View' page
6. In the View page, the details which are provided by the LG requestor while creating the request will be displayed in the non-editable mode. If the PSU 1 user wishes to submit the request to the bank, the user can click on Edit button and provide some applicant details like commercial registration number, address and click on Proceed button.
7. User can choose the relevant bank to submit the request and then click on Proceed button.
8. A confirmation page will be displayed with all the details provided, the bank chosen and also the fee details to process the LG request. When the user click on Allow button, the user will be redirected to the bank.
9. In the bank redirection, the user should successfully authenticate with the bank (PASP),then confirms the content of the LG, the PASP must ask the Business (PSU 1) to confirm the pricing and the Terms & Conditions of the LG. The bank allows the user to choose the account from which the PASP charges, fees and the payment LG amount will be made.
10. Now that the LG request is successfully submitted to the bank, the user is redirected back to the TPP portal and the portal uses Webhook push notification to get the status update of the submitted LG request from the bank in real-time. In the meanwhile, the bank validates the information submitted in the LG request, both LG requestor and Business PSU1 user will be updated with Awaiting Issuance status for the LG request.
11. When the LG request is processed and the LG is generated/rejected by the bank, we will have status updated as Approved/Rejected by Bank to both the users.