Correct Answer : Option (A) - DBS Bank
DBS Bank India Limited 28th Sep 2022 announced that it has provided a bespoke Credit Insurance - Accounts Receivable solution to Tata Metaliks, a pioneer in manufacturing pig iron and DI pipes in India, in collaboration with HDFC ERGO General Insurance Co Ltd and reinsured by Atradius, a worldwide provider of trade credit insurance.
This credit insurance deal is amongst the first to leverage Trade Credit Insurance. The revised framework was rolled out by the Insurance Regulatory & Development Authority of India (IRDAI) in November 2021, allowing banks to participate in this proposition.
Divyesh Dalal, Managing Director & Head, Global Transaction Services, DBS Bank India, said, “We expect insurance-backed receivable discounting to grow into a key working capital management as well as a sales enablement tool for corporates in India. The solution will help treasurers to drive discussion around corporate customers where there is a need to structure the credit risk.
In this endeavour, DBS has partnered with insurers like HDFC ERGO and Atradius to create an active trade credit insurance market in India. The deal is expected to ease the credit receivables for not just Indian corporates but also small and medium enterprises. It would help transform the trade landscape in India.”
Sanjay Kaw, President, Commercial Business, HDFC ERGO said
, "Following IRDAI's
guidelines for Trade Credit Insurance, we are delighted that DBS is one of the first movers in the Indian market, supporting financial transactions backed by Trade Credit Insurance. The policy protects the banks from a potential buyer default in case of funded receivables"..Source : DBS