Finance Essentials

When we think of investing, our minds often jump to stocks, mutual funds, or gold. But there’s a lesser-known and often underappreciated category: infrastructure. Infrastructure assets include long-term physical systems and public utilities such as: Roads, highways, bridges Airports, railways, metros Power plants (thermal, hydro, solar) Ports, logistics hubs, SEZs Telecom towers, fiber networks Water […]

Understanding FEDAI: Basics You Should Know The Foreign Exchange Dealers’ Association of India (FEDAI) was established in 1958 as an association of banks that deal in foreign exchange in India. Its main objective is to streamline forex operations and promote uniform practices among Authorized Dealers. FEDAI works closely with the Reserve Bank of India (RBI)

Working Capital Finance Working Capital Finance Definition Working Capital Finance refers to funding provided to businesses for managing their day-to-day operational expenses such as payment of wages, raw materials, electricity bills, rent, etc. It ensures that a company can maintain its liquidity and continue operations smoothly. Types of Working Capital Cash Credit (CC): A revolving

Letter of Credit (LC) – Explained Letter of Credit (LC) Definition: A Letter of Credit (LC) is a written undertaking by a bank, issued at the request of the buyer (importer/applicant), promising payment to the seller (exporter/beneficiary) on compliance with the terms specified in the credit. It is widely used in international and domestic trade

Non-Fund Based Credit Non-Fund Based Credit What is Non-Fund Based Credit? Non-fund based credit is a type of financial support provided by banks where no direct outflow of funds takes place. Instead, the bank acts as a guarantor for the customer and promises to pay a third party on the customer’s behalf in case of

Working Capital Assessment: The Lifeblood of Business Every successful business, large or small, must master the art of working capital management. Working capital is not just an accounting term — it’s the fuel that keeps the engine running. Whether a company can meet its day-to-day expenses, pay salaries on time, and fulfill orders without delay

DISTINCTION BETWEEN AN NBFC AND A BANK Non-Banking Financial Companies (NBFCs) Non-Banking Financial Companies (NBFCs) Introduction Non-Banking Financial Companies (NBFCs) are financial institutions that offer various banking services but do not hold a banking license. They are regulated by the Reserve Bank of India (RBI) under the RBI Act, 1934. NBFCs play a critical role

Non-Banking Financial Institutions in India Non-Banking Financial Institutions Historical Perspective The concept of non-bank financial institutions in India dates back to the early industrial era when government-backed institutions—like the Industrial Finance Corporation of India (IFCI) established in 1948—were set up to provide long-term project financing. Over time this ecosystem evolved to include NBFCs regulated by

The Guide to Money Market Instruments In the complex world of finance, the money market plays a quiet but powerful role in maintaining the liquidity and efficiency of the financial system. Whether you’re an investor, banker, or student of finance, understanding how money market instruments work is crucial. These instruments help institutions manage short-term funding

“ Alternate Sources of Finance When traditional bank loans are not accessible, practical, or sufficient, businesses and individuals turn to alternate sources of finance. These alternatives can offer more flexibility, faster approvals, or better alignment with specific financial goals. Note: Alternate sources are not replacements for bank finance — they’re complements or creative options for