Drawer
The buying company that asks the bank to issue the draft and pays at maturity.
EcotamElectronic draft
The credit instrument of the production chain
The electronic draft, from issue to settlement.
An electronic draft is a trade instrument accepted by the bank against the buyer's credit, then issued, transferred, discounted and settled across the central bank and ministry systems. This page walks through all four processes.
- Registered in the central bank's rial SEPAM
- Obligations recorded in SAMAT
- Issued through the ministry's draft system
The parties
Who takes part in the draft cycle
Drawee
The issuing bank that accepts the draft and pays the holder at maturity.
Holder
The seller, or whoever the draft has been transferred to, who may hold, pass it on or discount it.
Rial SEPAM
The central bank's electronic messaging system; draft, transfer and discount codes are issued here.
SAMAT
The obligations registry; the drawer's commitment and whether it is met are recorded here.
Ministry of Economy
The ministry's draft system; the stamp-duty tax ID and final issuance run through it.
Four processes
The full life cycle of an electronic draft
Tap any process to see its steps. The sequence follows the official process document.
Issuing an electronic draft
From the drawer's request to confirmation of issue — nine steps across three systems.
DrawerBankCentral bank SEPAMMinistry of Economy
- 1Request to issue
- 2Credit assessment and documents
- 3Draft code requested
- 4Drawer's obligation recorded in SAMAT
- 5Ceiling deducted, 16-digit code sent
- 6Draft code sent for the tax ID
- 7Draft code queried
- 8Positive response
- 9Stamp-duty tax ID returned
- 10Payment and party details recorded
- 11Draft text returned for signature
- 12Signed file sent back
- 13Signature verified, sealed and issued
- 14Issuance reported
- 15Issuance reported
- 16Issuance confirmed
Numbers show the order of messages. The arrow shows which side sends to which.
- 1Drawer approaches the bankThe buying company goes to the bank and asks for a draft.
- 2Request for issuanceThe formal request to issue the draft is filed by the drawer.
- 3Review and credit assessmentThe bank assesses the drawer and records the details in rial SEPAM and SAMAT.
- 4SEPAM code requestedThe bank requests a rial SEPAM code from the central bank.
- 5SEPAM respondsAfter checking ceilings, NAHAB and other controls, SEPAM returns a 16-digit draft code.
- 6Sent to the ministryThe draft code goes to the ministry to obtain a stamp-duty tax ID.
- 7Stamp duty paidOnce the stamp duty is paid, issuance begins in the ministry's draft system.
- 8AcceptanceThe drawee — the bank — accepts or declines the draft.
- 9Result announcedThe ministry reports acceptance or refusal to rial SEPAM and the bank.
Transferring an electronic draft
The holder can pass the draft to someone else as payment for its own purchase.
HolderBanking networkCentral bank SEPAMMinistry of Economy
- 1Transfer requested
- 2Documents collected
- 3Transfer code requested
- 4Transfer code sent
- 5Code and initial request reported
- 6Transfer code queried
- 7Positive response
- 8Draft text returned for signature
- 9Signed file sent back
- 10Signature verified, sealed, transfer executed
- 11Transfer reported
- 12Transfer reported
- 13Transfer confirmed
Numbers show the order of messages. The arrow shows which side sends to which.
- 1Transfer requestedThe holder files an electronic request at a credit institution, inside the system.
- 2Documents collectedThe banking network collects the paperwork, including the declaration that the trade is genuine, and the invoice.
- 3Transfer code requestedThe bank requests and receives a transfer code from the central bank's SEPAM.
- 4Reported to the ministryThe transfer code and the initial request are reported to the Ministry of Economy.
- 5Enquiry and confirmationThe ministry queries the transfer code and receives a positive response.
- 6Signature verificationSignatures are verified, the seal applied and the transfer executed.
- 7Recorded and announcedChanges are recorded in rial SEPAM and the transfer is announced to the holder.
Discounting an electronic draft
Turning the draft into cash before maturity, under a debt-purchase contract.
HolderBanking networkCentral bank SEPAMMinistry of Economy
- 1Discount requested
- 2Documents collected
- 3Discount code requested
- 4Discount code sent
- 5Code and initial request reported
- 6Discount code queried
- 7Positive response
- 8Draft text returned for signature
- 9Signed file sent back
- 10Signature verified, sealed, discount executed
- 11Discount reported
- 12Discount reported
- 13Discount confirmed and amount paid
Numbers show the order of messages. The arrow shows which side sends to which.
- 1Discount requestedThe holder requests discounting; this is possible at any credit institution.
- 2Documents collectedThe banking network receives the paperwork.
- 3Discount code requestedThe bank obtains a discount code from the central bank's SEPAM.
- 4Reported to the ministryThe discount code and the initial request go to the Ministry of Economy.
- 5Enquiry and confirmationThe ministry queries and receives a positive response.
- 6Signature verificationSignatures are verified, the seal applied and the discount executed.
- 7Payment releasedChanges are recorded in SEPAM and the amount is paid to the holder.
Settling an electronic draft
At maturity the bank pays the holder and collects from the drawer.
DrawerIssuing bankHolderSEPAM, SAMAT, Ministry
- 1Collection of the draft amount followed up
- 2Paid at latest one working day before maturity
- 3Drawer–drawee settlement recorded in SAMAT
- 4Settlement reported to central bank SEPAM
- 5Holder requests payment at maturity
- 6Draft amount paid
- 7Settlement reported to the ministry
- 8Drawee–holder settlement recorded in SEPAM
Numbers show the order of messages. The arrow shows which side sends to which.
- 1Collection followed upThe bank follows up collection of the draft amount from the drawer.
- 2Paid before maturityThe drawer pays at the latest one working day before maturity.
- 3Recorded in SAMATSettlement between drawer and drawee is recorded in SAMAT.
- 4Reported to SEPAMThe same settlement is also reported to the central bank's SEPAM.
- 5Holder's requestAt maturity the holder requests payment.
- 6Draft amount paidThe bank pays the draft amount to the holder.
- 7Reported to the ministrySettlement is reported to the Ministry of Economy.
- 8Final recordSettlement between drawee and holder is recorded in SEPAM.
The bank's role
What the bank does before issuing
Eleven steps the bank completes before a draft is issued.
- 1Credit assessment of the drawer
- 2Checking the drawer's credit ceiling200% of last year's sales, less outstanding facilities and working capital commitments
- 3Reviewing regulations on large facilities and related parties
- 4Taking sufficient collateral
- 5Obtaining the purchase invoice
- 6Obtaining a declaration that the trade is genuine
- 7Right of set-off against all the drawer's accountsIf the trade proves fictitious or obligations are not met
- 8Obtaining the rial SEPAM code
- 9Collecting and paying stamp duty
- 10Recording obligations in SAMAT
- 11Charging the fee
Enforcement
If obligations are not met
Where obligations go unmet
- Penalty for non-performanceThe non-participatory facility rate plus 6 percentage points
- Ban on issuing drafts for the drawerFor six months after the debt is settled
Where the trade proves fictitious
- Draft amount called before maturityIn full, by the drawee from the drawer
- Penalty from issue date to payment dateThe non-participatory facility rate plus 6 percentage points
- Ban on issuing for both drawer and holderFor six months after the debt is settled
Frequently asked
Questions about the electronic draft
What is an electronic draft?
An electronic trade instrument accepted by the bank against the buyer's credit. Unlike a cheque, at maturity the seller relies on a bank commitment rather than the buyer's account balance. Issuance, transfer, discounting and settlement all run through the central bank's rial SEPAM and the ministry's draft system.
How large can a draft be?
The drawer's credit ceiling is 200% of last year's sales, less outstanding facilities and working capital commitments. The final figure follows the bank's credit assessment.
What does a transfer cost?
0.2% of the draft amount. Transfers are made at the holder's request, at a credit institution, electronically inside the system.
When can a draft be discounted?
After two transfers, or once a quarter of the draft's life has passed. Discounting takes the form of a debt-purchase contract and is available at any credit institution.
How is stamp duty handled?
The bank sends the draft code to the Ministry of Economy to obtain a stamp-duty tax ID; the duty is collected from the drawer and paid, after which issuance begins in the ministry's draft system.
What if the drawer does not pay at maturity?
A penalty is charged at the non-participatory facility rate plus 6 percentage points, and the drawer is barred from issuing electronic drafts for six months after the debt is settled.
What if the trade turns out to be fictitious?
The drawee calls the full draft amount from the drawer before maturity, a penalty applies from the issue date to the payment date, and both drawer and holder are barred from issuing drafts for six months after settlement.
Where does the draft sit within Ecotam?
The electronic draft is one of Ecotam's credit instruments, alongside the payment order and the domestic letter of credit. Within Ecotam the same instrument moves tier by tier along the chain and can be discounted when needed.
This page is based on the official process document for electronic drafts in the production chain. Operational details may change under later circulars; contact our specialists for exact terms.
Put the electronic draft to work in Ecotam
Ecotam, Bank Tejarat's supply chain finance ecosystem, makes this instrument available across your supply and distribution chain.
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