Enhancing Credit Delivery through Straight-Through Processing (STP): A Comprehensive Documentation Framework

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Introduction Straight-Through Processing (STP) in credit delivery refers to the end-to-end automation of the lending lifecycle—from loan application to disbursement—without the need for manual intervention. This digital transformation facilitates seamless data capture, rule-based processing, automatic routing, transaction confirmation, and final settlement, thereby enabling an efficient, accurate, and scalable credit delivery system. To ensure the successful…

Understanding important points about Term Loans: Key Types, Uses, and Features

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IntroductionIn both business and personal finance, the need for funds often arises to meet various requirements such as working capital, large purchases, or expansion projects. Among the various funding options available, term loans remain one of the most commonly utilized instruments, offering structured financing with defined repayment schedules. Types of Term Loans Common Applications of…

The details of how the registration of charges done under companies act

Legal and Regulatory aspects of banking, Loans and advancesLeave a comment

(This post elucidates the entire process of creation of charge or modification of charge and satisfaction of charge and the requirement of information in the form of a resolution passed in the Board meeting) According to Section 77 of the Companies Act, every company that creates a charge shall register the same with the Registrar…

Appraisal of financing infrastructure projects

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Any credit facility provided to a borrower company engaged in an infrastructure facility is known as ‘infrastructure lending’.  The activities such as developing, or operating, and maintaining, or developing, operating, and maintaining any infrastructure facility of the following sector are called infrastructure projects. Public sector units registered under the Companies Act may be provided infrastructure…

Challenges in Managing Working Capital Finance

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Working capital finance is vital for sustaining daily operations and ensuring a business’s financial stability. However, several operational and strategic issues can hinder its effective management. These include cash flow mismatches, suboptimal inventory control, inefficiencies in receivables and payables, and complications arising from external financing. Missteps in these areas can lead to liquidity constraints and…

Framework for project financing and provisioning in infrastructure and real estate sectors

Loans and advances, Risk ManagementLeave a comment

The Reserve Bank of India issued draft guidelines to provide a harmonised prudential framework for financing projects in Infrastructure, Non-Infrastructure, and Commercial Real Estate sectors by regulated entities (REs). In the backdrop of a review of the extant instructions and analysis of the risks inherent in such financing, the Central Bank prescribed norms for restructuring…