MUFG Bank, Ltd. (MUFG), Japan’s leading financial institution, has successfully executed its first fully digital trade finance transaction from its GIFT City Branch for a subsidiary of Tata International Limited, the global trading arm of the Tata Group. This landmark transaction highlights MUFG’s commitment to trade digitalization and innovation in India’s growing financial ecosystem. 

Using the Contour Network Hub from Xalts, MUFG and Tata International’s Singapore treasury center digitally negotiated, prepared, applied for, and accepted a $15-million Letter of Credit within three hours—a process that traditionally takes up to two days using physical documentation. This breakthrough not only enhances efficiency in international trade but also reinforces MUFG’s role in driving technology-led transformation in transaction banking. 

The successful execution of this transaction further strengthens the significance of MUFG’s GIFT City branch (Gujarat International Finance-Tec City), positioning it among the largest lenders in the GIFT IFSC (International Financial Services Centre). MUFG’s continued expansion in India aligns with the country’s vision of becoming a global financial hub. 

Commenting on the milestone, Belinda Han, Managing Director, Head of Transaction Banking Asia Pacific at MUFG, emphasized the bank’s focus on digital innovation and its commitment to empowering clients with cutting-edge financial solutions. 

Sumit Sharma, Group Head of Corporate Finance and Treasury at Tata International, noted that digital efficiencies in trade finance have a direct impact on business operations, enabling seamless treasury management across multiple centers. 

Shashank Joshi, Deputy CEO of MUFG India, highlighted the deal as a significant step in positioning MUFG as a preferred trade finance partner. He expressed optimism about scaling this success to benefit a broader client base. 

Additionally, Supreet Kaur, Chief Operating Officer at Xalts, welcomed MUFG Bank to the platform, reaffirming Xalts’ commitment to supporting corporate treasuries in optimizing trade finance operations. 

This milestone transaction sets the stage for faster, more efficient, and transparent trade finance processes, paving the way for further digital advancements in the sector.