Bulk Disbursement Solutions

With HSBC's Bulk Disbursement Solution execute your bulk payments in a smooth and seamless manner. We have a dedicated operations services team to facilitate bulk disbursements.

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• Benefits
• Key Features

Benefits of HSBC Bulk Disbursement Solutions

• One-stop comprehensive bulk disbursement solution for the dividend disbursement
• Capability to handle large volumes
• Comprehensive coverage through our branch network and correspondent bank branches
• Timely and accurate reconciliation and information flows
• Dedicated service team to handle the client's disbursements and to facilitate efficient investor service

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Dividend Warrants

• Dividend warrants will be payable at par at HSBC locations with an upper limit of INR 1,00,000
• For investors residing at non-HSBC branch locations, we provide correspondent bank warrants at 100 locations. These warrants will be issued with an upper limit of INR 25,000 (except for Corporation Bank where the limit is Rs. 10,000)
• For dividend payments of value greater than INR 1,00,000 at HSBC branch locations and INR 25,000 at our correspondent bank locations, we would be providing Demand Drafts/cashier orders payable at the investor's location. Our Demand Drafts/cashier order payments cover over 900 locations in India
• Cashier Orders against warrants payable at HSBC branch locations will be issued within 72 hours of receiving the request. The turnaround time for Demand Drafts will be 72 hours

Electronic Clearing Services (ECS)

• ECS clearing is offered at the RBI available locations
• In the event of ECS returns/rejects, Cashier Orders and Demand Drafts can be issued within 2 working days from the date of receipt of return/reject information Demand Drafts for investors at remote locations and FCY

Demand Drafts for investors at remote locations and FCY Demand Drafts

• HSBC has an arrangement for providing Demand Drafts payable at remote locations (not covered under the 117 warrant locations and the 900 HSBC Draft locations)
• Foreign currency drafts and foreign currency remittances can be facilitated for the client's overseas investors/promoters

MIS and Reconciliation Reports

• Monthly reconciliation and paid/unpaid reports will be provided for the first 6 months of the dividend deal
• A final reconciliation report will be provided within 15 days of expiry of validity of the warrant
• Post such final reconciliation, a quarterly reconciliation will be provided for the remaining period of the warrant deal
• In addition, our Client Services team will provide balance confirmations, as and when requests are received from the client

Security and Risk Control

Security and fraud control are critical for any successful bulk disbursement solution. HSBC offers unparalleled controls to minimize the risks

• Online Validation of Warrants
  HSBC has online validation of warrants at all branches and at select correspondent bank locations. This will enable us to validate the warrants before honoring the same as against post facto validations prevailing in the market.
• Cap on Warrants
  HSBC will set a cap on the warrant amount based on mutual discussion with the client, For amounts exceeding the cap Cashier order or Demand Drafts will be issued. This will ensure that the risk is limited to the cap amount.
• Tamper Proof taping of Warrants
  HSBC will offer taping of amount and beneficiary name on the face of the warrant. This will obviate risk of fraud due to change in either amount or beneficiary name
• 3 way verification of warrants
  HSBC offer verifications in 3 stages. First, online validation of cheque number, amount and warrant numbers as explained above. Second validation of beneficiary name against the master at the time of presenting of warrants. Third, all the above details are rechecked against the master once paid warrants are received at HSBC. If required we have the ability to return the warrants in the first two stages if instructed by the client.

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