What are the documentation formalities for Channel Financing?
As India does not have a proper legal framework regarding transactions through the Internet, CIB operates under the purview of the Indian Contract Act. This is to safeguard both, the company and the Bank. The channel partners will have to accept the offer from ICICI Bank and accept the terms and conditions of CIB. To read the CIB terms and conditions click here. If overdraft facility is given to the dealer, the dealer can either operate the account on his own or can give a Power of Attorney or Letter of Mandate to the company for operating the Overdraft account. In the latter situation the dealer will have to also give a Mandate Letter/Indemnity to the Bank for linking the Overdraft a/c with that of the Company’s account.
