Why the “Transit Period” in Export Is Often Misunderstood
The “transit period” in export finance refers to the banking time between the date an export bill is negotiated/purchased/discounted by the bank and the date the bill proceeds are received in the bank’s Nostro account, not the shipping time taken by goods to reach the overseas buyer. This period is termed the Normal Transit Period…
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Understanding the “Cooling Period” in the Collection of Foreign Currency Cheques
Introduction In international banking, the collection of foreign currency cheques involves multiple jurisdictions, correspondent relationships, and operational risks. One of the most critical operational controls in this process is the “cooling period” — the waiting interval a bank observes after receiving provisional credit in its Nostro account before releasing funds to the customer. This period…
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RBI’s 2025 Capital Market Exposure Directions: A New Prudential Framework for Banks
Policy Context and Objectives The Reserve Bank of India has issued draft “Commercial Banks – Capital Market Exposure (CME) Directions, 2025” proposing consolidated, risk-sensitive limits on banks’ direct and aggregate exposures to capital markets, with phased implementation envisaged from April 1, 2026 subject to finalisation. The draft CME framework seeks to rationalise and unify disparate…
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New Rule: e-Arrival Card Mandatory for Foreign Nationals and OCI Cardholders Traveling to India
In a move to simplify immigration and enhance digital compliance, the Government of India has introduced mandatory online submission of the Electronic Arrival (e-Arrival) Card for all foreign nationals and Overseas Citizens of India (OCI) cardholders traveling to India. This update supports India’s ongoing initiative toward paperless and tech-enabled border processes. Key Requirement From 1…
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Education Loan Scheme in India: Structure, Subsidies, and Best Practices
Education loans in India finance tuition, living expenses, travel, equipment, and exam fees for eligible courses in India and abroad, delivered primarily by banks/NBFCs with government-backed interest subsidy and targeted schemes for specific communities and income groups. Policy framework Loan types Eligibility Loan quantum and coverage Interest rates and concessions Security, margin, and co-borrowers…
Vidya Lakshmi Portal and PM-Vidyalaxmi Scheme: A One-Stop Platform for Education Loans in India
The Vidya Lakshmi Portal is a government-run, single-window platform designed to help students access education loans and government scholarships in one place. It streamlines the process of applying for multiple loan schemes across various banks, ensuring transparency and convenience for aspiring students. The Pradhan Mantri Vidyalaxmi (PM-Vidyalaxmi) Scheme, accessed through this portal, specifically offers collateral-free…
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