RHB Bank offers BPO facility
Malaysian importers and exporters can now settle their payments with a new payment mechanism, the Bank Payment Obligation (BPO), through RHB Bank Bhd, the first bank in the country to offer such a facility for its customers.
The BPO, which came into force on July 1, is a trade instrument for the manufacturing sector and trading companies that wish to minimise paper work.
RHB Bank director of treasury and group transaction banking Michael Lim said the group has received clearance and approval from Bank Negara to offer the BPO facility to their corporate and wholesale customers.
"We aim to provide customers with value-added supply chain management services, flexibility and confidence when dealing in an open account trade," he told reporters after the introduction of BPO at a RHB trade seminar in Kuala Lumpur today.
He said the BPO will provide the benefits of a letter of credit in an automated environment, without the drawbacks of manual processing associated with the traditional letter of credit.
Meanwhile, Noriah Ngah, vice president and head, trade solutions division, said the bank is on the move to create awareness of this product by having seminars in each state it operates in to give a clearer picture for customers.
"This is our sixth seminar, we have started in Ipoh, Melaka and tomorrow in Selangor.
"Through this product and services, the bank, in turn, will have the opportunity to grow its business together with the industry and contribute to the country's economy," she added.
RHB Bank is the first domestic bank to perform live BPO transactions with another BPO-enabled foreign bank, involving actual transaction data transmitted via Swifts' Trade Services Utility.
To date, a total of 53 banks around the world are BPO-ready.-- Bernama