Integrated Treasury Management in Banks: Concept, Functions, and Strategic Advantages
IntroductionIntegrated Treasury Management refers to the consolidation of a bank’s domestic and foreign exchange treasury operations into a unified framework. Traditionally, banks maintained separate departments for managing domestic treasury functions—primarily focused on statutory reserve management and fund deployment—and foreign exchange treasury operations—focused on currency risk management and forex-related transactions. The evolution of treasury functions and…
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The treasury management (or treasury operations) can be explained as the management of the best possible use of surplus funds, maintain liquidity, reduce the overall cost of funds, and mitigate operational and financial risk. Traditionally, banks used to have two separate departments for treasury operations of a bank namely the domestic treasury/investment operations of a…
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Understanding Foreign Currency Convertible Bonds (FCCBs): A Hybrid Capital-Raising Instrument
Foreign Currency Convertible Bonds (FCCBs) are hybrid financial instruments that combine features of both debt and equity. Issued by companies seeking to raise capital from international markets, FCCBs are denominated in a foreign currency and offer investors the option to convert their holdings into equity shares of the issuing company under specified conditions. Key Features…
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What is factoring?
Factoring is commonly identified as accounts receivable factoring, invoice factoring, and sometimes accounts receivable financing. Factoring service is a service that covers (i).Collection of bills, (ii).discounting of bills (iii).maintenance of accounts books in domestic and international trade. Factoring enables companies to sell their outstanding book debts for cash. They sell invoiced receivables at a discount…
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Activities of Payment gateways and payment aggregators explained
Payments in the online space are facilitated by a number of intermediaries like the payment gateways and payment aggregators. These intermediaries act as the conduit between merchant & customer who is willing to pay for the services availed or the goods purchased. In online payments all the debit and credit transactions are routed through credit…
NeSL: A repository of legal evidence holding the information pertaining to any debt/claim
National E-Governance Services Limited (“NeSL”) is a Union government company and is governed by the provisions of the Insolvency and Bankruptcy Code, 2016 (“IBC”) and Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017. It is appointed by the Insolvency and Bankruptcy Board of India (“IBBI”) as an Information Utility (“IU”). As a regulated…
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