Frequently Asked Questions

Vayana TradeXchange is the brand name under which Vayana (IFSC) Pvt Ltd, (which is a wholly owned subsidiary of Vay Network Services Pvt Ltd) offers all its products and services. VTX is licensed and regulated by the International Financial Services Centres Authority (IFSCA), a unified regulator in India, to build and operate its International Trade Finance Services (ITFS) platform – Vayana TradeXchange (VTX). Commercially live since June 14, 2023, with the highest number of the transactions among all ITFS platforms.

Vayana is India's Most-Trusted Trade Credit Infrastructure, solving the problems from Credit Intelligence to Liquidity for Supply Chains. Vayana offers a range of Trade Credit and Trade Enablement solutions across all tiers of the Supply Chain. Financing close to USD 62 Billion+ to date with over 4,00,000 enterprises across 3,000+ supply chains, Vayana is the preferred partner in supply chain finance

VTX operates as a digital trade-finance marketplace that connects Exporters and Importers with multiple financiers on the platform. An Exporter/ Importer submits an invoice on which participating financiers can compete to fund the transaction through a transparent bidding mechanism. This enables the exporter and importers to access multiple financing options and competitive pricing through a single digital platform. Vayana TradeXchange provides participants with a transparent auction-based platform for financing Trade Receivables or Trade Payables through mechanisms such as Factoring or Reverse Factoring. Being a responsible and regulated entity, VTX ensures detailed due diligence on each participant through Know Your Customer (KYC), Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) checks in addition to implementing robust fraud management, data confidentiality and transaction security measures.

Currently, the following entity types can participate on the ITFS platform i.e. Exporters (seller), Importers (buyer), Financier, Insurance & credit guarantee institutions and other eligible entities can be direct participants on the VTX-ITFS platform. The participants, their promoter/s, or promoter groups should be domiciled and regulated or registered in jurisdictions not identified in the public statement of the Financial Action Task Force as “High-Risk Jurisdiction” subject to a “Call for Action” or from any jurisdiction/ country specified by the Govt of India by an order or by way of agreement or treaty with other sovereign government.

You can get onboarded by filling an online application. Select your entity type Buyer/ Seller or Financier along with other mandatory credentials and submit. You will be receiving an e-mail from VTX containing your user ID and Password. With this, you can log into the VTX-ITFS application and fill up the detailed Application Form for registering your entity on VTX. Also, any Buyer, Seller or Financier as stated above can register themselves on VTX by submission of the application form along with all documents physically.

Accessing the VTX platform is easy! Follow these steps:
1. Visit our website: Open your web browser and type https://vayanatradexchange.com/ in the address bar to visit the VTX website.
2. Login: For an existing user, click on the “Login” button at the top right corner of the page. Enter your user ID and password to log in.

That’s it! You’re all set to explore the future of trade finance.

Entities wishing to register with VTX are required to execute a one-time Master Agreement with VTX. The format of this agreement is provided along with the Application Form. To execute the Master Agreement, the entity must designate one or more authorized signatories and provide a valid authorization letter in original to VTX. Further details are elaborated in the login section of the application, accessible after successful registration as a “guest user.”

Apart from the Master Agreement, all entities must furnish KYC documents for entity identification, address proof, and Beneficial Ownership (BO) details. Similar KYC documents are necessary for individuals authorized to operate on behalf of the entity. Additional documentation will vary based on the entity type (e.g., Company, partnership, or proprietorship) and the country of operation. The VTX Application Form is designed to guide users intuitively and will generate a list of required documents based on the entity type.

If the entity possesses a 20-digit LEI Code Number (Legal Entity Identifier Code) or a CKYC Registration Number (for Indian entities), these details must be shared with VTX. Indian entities intending to register on VTX must also provide a declaration/undertaking confirming their compliance with the applicable provisions of the Foreign Exchange Management Act (FEMA) and/or the relevant Directorate General of Foreign Trade (DGFT) requirements concerning transactions conducted on the VTX platform.

Currently, VTX is offering solutions for:

1. Financing of receivables through Export Factoring product related to open account transactions only.
2. Accounts payable via Buyer Led Supplier Financing(Import Financing) through multiple financiers that are registered with the VTX Platform.

For a detailed demo of the products, email us at [email protected] or submit your details at https://vayanatradexchange.com/contact and we shall get in touch with you to schedule a demo.

For more information visit our website: https://vayanatradexchange.com/

1. One-time setup fee: VTX Platform will be charging a one-time setup fee at the time of registration and an annual renewal fee from all participants.
2. Transaction fee: Transaction fee will be charged to all participants on an annualized basis for the gross invoice value for the finance tenor.

Vayana TradeXchange is the brand name under which Vayana (IFSC) Pvt Ltd, which is a wholly owned subsidiary of Vay Network Services Pvt Ltd, offers all its products and services. VTX is licensed and regulated by the International Financial Services Centres Authority (IFSCA), a unified regulator in India, to build and operate its International Trade Finance Services (ITFS) platform – Vayana TradeXchange (VTX). VTX has been commercially live from 14th June 2023.

For more details write to us at [email protected]

1. The documents to be uploaded on the platform by the Buyer/ Seller are listed below:
2. Invoice (mandatory and must contain the six-digit HS Code – Harmonized Systems Code)
3. Transport Documents like Bill of Lading / Airway Bill / Charterparty Bill of Lading / etc (mandatory)
4. Packing list
5. Insurance
6. Certificate of Origin
7. Inspection Certificate
8. Shipping Bill / Bill of Entry (mandatory for Indian Exporters / Importers as applicable)
9. Purchase Order / Sale Agreement / Purchase Agreement / Proforma Invoice etc

Or any other document/s required under specific products called for by VTX.

Absolutely! Uploading multiple invoices in bulk is a breeze with our platform. Here’s a simple guide on how to do it:

1. Download Predefined Template: To get started, access the predefined template on the platform. This template is designed to ensure seamless data entry and compatibility with our platform. You can find this template in the “Bulk Upload” section.
Enter Transaction Details: Open the template and enter your invoice details according to the provided format. Make sure to accurately fill in all the necessary fields.
Upload Excel File: Once your invoice details are filled out, head back to the platform and upload the Excel file
Transaction Creation: As you upload the Excel file, our platform’s automated system will process the data and create TFU for each invoice. These TFUs will be visible on your dashboard with the details you’ve entered.
Review and Confirm: Before finalizing, take a moment to review the transactions created. Ensure that all information is correct and matches your original invoices.
Submit: Once you’re confident with the data, upload the Standard Trade Documents and submit the transactions. Our platform will handle the rest, including organizing your invoices and making them easily accessible whenever you need them.

This streamlined process not only saves time but also minimizes the chance of errors.

Absolutely! Uploading multiple invoices in bulk is a breeze with our platform. Here’s a simple guide on how to do it:

1. Download Predefined Template: To get started, access the predefined template on the platform. This template is designed to ensure seamless data
entry and compatibility with our platform. You can find this template in the “Bulk Upload” section.
2. Enter Transaction Details: Open the template and enter your invoice details according to the provided format. Make sure to accurately fill in all the necessary fields.
3. Upload Excel File: Once your invoice details are filled out, head back to the platform and upload the Excel file
4. Transaction Creation: As you upload the Excel file, our platform’s automated system will process the data and create TFU for each invoice. These TFUs will be visible on your dashboard with the details you’ve entered.
5. Review and Confirm: Before finalizing, take a moment to review the transactions created. Ensure that all information is correct and matches your original invoices.
6. Submit: Once you’re confident with the data, upload the Standard Trade Documents and submit the transactions. Our platform will handle the rest, including organizing your invoices and making them easily accessible whenever you need them.

This streamlined process not only saves time but also minimizes the chance of errors.

“Reverse Trade Financing” refers to the process of initiating the creation of a Trade Financing Unit by the Importer/ Buyer on the VTX Platform.

VTX as of date facilitates transactions in the following currencies.

1. US Dollars
2. Great Britain Pound Sterling,
3. Euro
4. Australian Dollar
5. Canadian Dollar
6. Japanese Yen
7. Singapore Dollar.

VTX does not have any constraint in adding other currencies and will do so in the future depending on the demand from various trade corridors and entities registered on the VTX Platform.

Once the Trade Financing Unit (TFU) or Reverse Trade Financing Unit (RTFU) is created on VTX by the Seller or Buyer, it will become visible on VTX’s auction platform for Financiers registered with VTX to place bids. These bids represent coupon rates (discounting/interest rates offered on the VTX Platform by Financiers), which are quoted based on their internal risk assessment processes and various considerations.

For Trade Financing Units (TFUs) and Reverse Trade Financing Units (RTFUs) where the bidding process concludes, the funds will be received by the “Seller’s Bank” within T+2 days. Crediting the Seller Bank’s Nostro Account maintained

Absolutely! Our platform provides you with the capability to conveniently track the status of your trade finance transactions online. Here’s how you can do it:

1. Login: Visit our platform’s website https://vayanatradexchange.com/ and log in using your credentials.
2. Transaction Dashboard: Once logged in, you can navigate to your transaction dashboard. Here, you’ll find a list of all your ongoing trade finance transactions.
3. Transaction Status: Each transaction will have a status indicator that gives you the real-time information about its progress.
4. Transaction Details: You can click on a specific transaction to view more details.
5. Notifications: Our platform will also keep you updated with notifications about the important milestones of your transactions. You might receive email notifications when a transaction is in bidding queue, bid is accepted, or when there’s any other significant update.

All settlements adhere to the current payment process for cross-border trade, conducted via the Seller’s or Buyer’s Bank using authenticated SWIFT messages. These settlements occur outside the VTX platform directly between the parties. Upon completing the payment of the remaining balance to the Seller, the Financier must verify and confirm this action on the VTX Platform, subsequently uploading the relevant SWIFT Message.

1. Disbursement: Disbursement by the Financier to the Seller on acceptance of the bid by the Seller/ Buyer.
2. Repayment: Repayment by the Buyer to the Financier on the due date as mentioned in the TFU /RTFU.

Minimum Value of Finance – Equivalent of USD 10000

Maximum Value of Finance – Any amount

*Financing will be restricted to 70 % to 100 % of gross invoice value subject to above minimum value and is at the discretion of the Financier / Investor

VTX will be accessible for bidding and other permissible activities, such as document uploads, TFU/RTFU creation, and bid acceptance, around the clock (24/7), except for a 30-minute interval from 9:30 pm to 10:00 pm IST. Please note that any activity or transaction conducted on the VTX Platform during Saturday or Sunday will be dated as the next working day.

Getting in touch with the VTX customer support team for assistance with any issues you encounter while using the VTX platform is easy. Here’s how you can seek assistance:

1. Customer Support Email: You can reach out to our customer support team by sending an email to [email protected] : Describe the issue you’re facing in detail, and our support team will respond promptly to provide assistance.
2. RM: Get in touch with your Relationship Manager (RM), who is the point of contact for personalized assistance and guidance.
3. FAQs: Before reaching out to support, you might want to check our platform’s FAQs. Many common questions and issues are addressed here, and you might find a solution without the need to contact support.

IFSC – International Financial Services Centers are independent jurisdictions set up or to be set up under the Constitution of India by the Government of India, as per the directions provided in Section 18 of the Special Economic Zones Act 2005. An IFSC is a specialized designated area in a Special Economic Zone (SEZ) developed to create a global financial hub, wherein financial entities can be established to provide various financial services such as corporate banking, insurance, investment and fund management, trading of securities and bullion, aircraft leasing, etc., to any person or entity across the globe.

The Government of India has established the first and only IFSC in GIFT City (Gujarat International Finance Tech City). GIFT City is a planned business district in the state of Gujarat, India, located about 50 km from Ahmedabad (the largest city in Gujarat) and 30 km from Gandhinagar, the capital of Gujarat. GIFT City comprises two parts: 1. DTA (Domestic Tariff Area) and a Multi-Service SEZ, of which the present IFSC is a part.

IFSCA – International Financial Services Centers Authority is a unified regulator that was formed in December 2019 under the International Financial Services Centers Authority Act, 2019, which was passed by the Government of India. The Act provides for the establishment of the Authority to develop and regulate the financial services market in IFSCs in India. The IFSCA Act empowers IFSCA to regulate entities that operate in IFSC and is headquartered in GIFT City, Gujarat, India.

IFSCA has the combined powers of the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority (IRDA), and Pension Fund Regulatory and Development Authority (PFRDA) as a unified regulator for the development and regulation of financial products, financial services, and financial institutions in IFSCs in India.

The main objective of IFSCA is to develop a strong global connect and focus on the needs of the Indian Economy as well as to serve as an International Financial Platform for the global economy.

• Global Recognition: The establishment of IFSCA aims to garner global recognition for India as a financial hub, boosting confidence among global investors, especially as India’s GDP crosses the USD 5 trillion mark in the coming years.
• Preferred Destination: IFSC aspires to become the preferred destination for capital raising, trading in various financial products, and accessing a wide range of international financial services.
• Attracting Foreign Investors: The goal is to attract foreign investors, encouraging them to invest not only in India but anywhere across the globe.
• Centralizing Transactions: IFSC seeks to centralize transactions and businesses such as aircraft leasing, international bullion exchange, and trading in securities and bonds. These activities are currently conducted by foreign arms of Indian entities set up in IFSC.
• Agile Regulatory Regime: IFSC is designed to offer an agile and simplified regulatory regime, reducing the bottlenecks that investors might encounter while investing in India, thereby enhancing the ease of doing business.
• Innovation and Fintech Hub: A key objective of IFSC is to transform into a centre of innovation and a global hub for fintech.
• Regulatory Compliance: IFSC is committed to ensuring full compliance with Financial Action Task Force (FATF) standards, with stringent enforcement of Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) measures in place.
• Income Tax Exemption: Business entities within IFSC enjoy a 10-year exemption from income tax.

ITFS – International Trade Financial Services is an electronic platform that provides Trade Finance Services at the International Financial Services Centre (IFSC). It is a platform designed to facilitate financing for Cross-Border Trade through a transparent bidding mechanism, connecting Buyers and Sellers across the globe with participation from Financial Institutions located in India or abroad.

To achieve its objectives, IFSCA issued detailed guidelines related to application, capital requirements, operations, and the regulatory framework for operating the

ITFS Platforms in July 2021. Additionally, guidelines on Factoring and Forfaiting of Receivables were released in August 2021. After a thorough evaluation of products, processes, and IT capabilities, IFSCA granted necessary licenses to a few entities. Prior to their commercial launch, IFSCA conducted fit and proper due diligence on the entities that received such licenses.

ITFS represents one of the significant initiatives of IFSCA, allowing licensed entities to establish and operate electronic platforms. These platforms facilitate the financing of international trade flows through an institutional mechanism, incorporating a dedicated electronic platform. This platform effectively caters to the trade finance requirements of both Exporters (Sellers) and Importers (Buyers) by involving multiple financiers and employing a unique transparent rate discovery mechanism.

The ITFS platform operator shall not assume any credit risk on the transactions carried out on its platform or provide any guarantee for the same to any of its participants.