July 2024

A letter of credit, or a credit letter, is a letter from a bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount. If the buyer is unable to make a payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase. It may be offered as a facility (financial assistance that is essentially a loan). Due to the nature of international dealings, including factors such as distance, differing laws in each country, and difficulty in knowing each party personally, the use of letters of credit has become a very important aspect of international trade to protect buyers and sellers. A Letter of Credit (LC) is a document that guarantees the buyer’s payment to the sellers. It is issued by a bank and ensures timely and full payment to the seller. If the buyer is unable to make such a payment, the bank covers the full or the remaining amount on behalf of the buyer. Letter of Credit Letter of Credit (LC) is a credit limit that is used majorly by businesses engaged in international trade. It acts as a payment guarantee offered by Bank/NBFCs to exporters. Letter of Credit is a payment instrument in which Banks/NBFCs offer monetary guarantee to enterprises that are engaged in the import and export businesses, in case of payment delays or any default. Enterprises operating businesses overseas often deal with unknown suppliers so they require assurance of payment before performing any business transaction. Therefore, Letter of Credit acts as a financial instrument that offers payment assurance to the suppliers or exporters dealing in sales and purchase of goods and services. How Letter of Credit Works Letter of Credit is issued by the Bank to the Buyer in order to secure the timely payment by the buyer to the seller. It acts as a guarantee on behalf of the buyer that he/she pays the full amount to the seller, as per the defined timeline or on time. If in case the buyer is unable to repay the amount to the seller on time, then the bank will pay on the buyer’s behalf to the seller. Features LC is issued against Collateral/Security that may include buyer’s Fixed Deposits and Bank Deposit, etc. Certain fees is charged by the Bank depending on the type of Letter of Credit Guidelines are issued by the International Chambers of Commerce (ICC) for any form of Letter of Credit Correctness of Letter of Credit: Only documents are exchanged and no goods and services are involved in this process. Therefore, mentioned details in the letter should be correct that including the name of the seller, date, amount, product name and quantity, etc. Banks will deny the payment, if they find any slightest mistake in the buyer’s name, product name, shipping date, etc. As all parties deal in documents only and not goods and services, so the payment will not depend on the defects in goods and services, if any Types of Letter of Credit in India 1. Credit on Sight In this type of credit, an entrepreneur can present a bill of exchange to the lender with a sight letter and can take the funds instantly on the basis of a letter of sight. A sight letter of credit is considered to be the most instant letter of credit that can be availed immediately. 2. Time Credit Bill of exchange that is paid after an agreed time period between the lender and the borrower is known to be time credit. A certain time period is involved in this type of credit. Letter of Credit defining time credit allows a borrower with some days to repay the amount, only after receiving the goods. 3. Standby Letter of Credit (SBLC) Standby Letter of Credit (SBLC) is a credit mechanism in which an importer can get foreign currency funds internationally by providing the issuance of SBLC from the domestic bank that guarantees payment to the international bank if the borrower fails to repay the amount before the due date. 4. Revocable Credit Revocable credit is a type of letter of credit in which the terms and conditions of this type of LC can be amended or canceled by the issuing bank. It is not important for the issuing bank to tell beneficiaries about any change in the letter of credit. 5. Irrevocable Credit Irrevocable Credit is a type of LC in which the terms and conditions cannot be amended or canceled by the issuing bank. The bank has to obey the directions or commitments mentioned in the letter of credit. 6. Transferable Credit Transferable credit, as the name suggests is a type of LC in which the beneficiary can transfer his/her rights to third parties. The terms and conditions may differ as per the trade and industry. Process of Letter of Credit Step 1: The applicant or the buyer approaches the desired bank for the issuance of a letter of credit. This bank is known as an opening or issuing bank. Step 2: There will be an advising bank (mostly an international bank) for the beneficiary or seller that will receive the Letter of Credit issued by the issuing bank of the buyer. Further, the advising bank will check the authenticity of the letter of credit by checking the name, product details, etc. Step 3: Advising bank will share the letter of credit with the seller by keeping him/her rest assured that the money shall be received, as banks are now involved in this process. Step 4: Post seller assurance, the goods will be shipped as per the details mentioned by the buyer or applicant. The seller will now receive the bill of lading as the seller has already exported the goods. Step 5: The buyer shall now present the Bill of Lading to the Nominated or the Negotiating bank (International bank) where the bank will check all the shipping documents, and whether all goods were shipped as per the instructions. Finally, the nominating bank will do the payment to the seller or exporter. Step 6: Further

The Forest Rights Act, India or the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act is also known by other names like the Tribal Rights Act or the Tribal Land Act. It deals with the rights of the communities that dwell in the forests (including Scheduled Tribes), over land and other resources, which have been denied to them over the years because of the continuation of forest laws from the colonial era in the country. In December 2006, the Forest Rights Act was passed which accords legal recognition to the rights of traditional forest-dwelling communities and partially corrects the injustice caused by colonial-era forest laws. The earlier policies and acts – such as previous Forest Acts 1865, 1894, 1927 prevented the local communities from using the resources. Forest Rights Act (FRA) 2006 Forest Rights Act (FRA) 2006 What is it called? Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act (FRA)  What does the Act intend? The act tries to recognize marginal and tribal communities’ rights over forest lands over which they were traditionally dependent Are communities’ rights catered to by FRA 2006? Yes, the act intends to help all the destitute  forest communities across India to have right over common property forest lands What is the potential of FRA 2006? This Forest Rights Act is capable of:   Empowering local self-governance Issue of poverty alleviation and pro-poor growth is paid heed to  Conservation and management of natural resources of India are highlighted and addressed by the FRA Historical Background A large number of people especially the scheduled tribes have lived in and around forests for a long period in symbiotic relationship. This relationship has led to formalized or informal customary rules of use and extraction, often governed by ethical beliefs and practices that have ensured that forests are not too degraded. During the colonial time the focus shifted from the forests being used as a resource base for sustenance of local communities to a State resource for commercial interests and development of land for agriculture. Several Acts and policies such as the 3 Indian Forest Acts of 1865, 1894 and 1927 of Central Govt and some state forest Acts curtailed centuries‐old, customary‐use rights of local communities. This continued even after independence till much later until enactment of The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006. Implementation of the Forest Rights Act 2006 Gram Sabha is the authority to initiate a process to vest rights on marginally and tribal communities after assessment of the extent of their needs from forest lands. Gram Sabha after its assessment, receives claims of the communities, consolidates and verify these to help them exercise their rights Gram Sabha then passes such a resolution to sub-divisional level committee (formed by the state governments.) If one or more communities are not satisfied by such a resolution, may file a petition to sub-divisional level committee Sub-Divisional Level committee after its assessment, passes the resolution to Sub-divisional officer to district level committee for its final decision The district-level committee’s decisions are considered final and binding A state-level monitoring committee is constituted by the state government to monitor the process of recognition of these rights The officers included in the sub-divisional level committee, district-level committee and state-level monitoring committee include: Officers of Department of Revenue of state government Officers of Department of Forests of state government Officers of Department of Tribal Affairs of state government Three members of Panchayati Raj Institutions including two Scheduled Tribes members and at least one woman The Act recognizes and vest the forest rights and occupation in Forest land in Forest Dwelling Scheduled Tribes (FDST) and Other Traditional Forest Dwellers (OTFD) who have been residing in such forests for generations. The Act identifies four types of rights: Title rights: It gives FDST and OTFD the right to ownership to land farmed by tribals or forest dwellers subject to a maximum of 4 hectares. Ownership is only for land that is actually being cultivated by the concerned family and no new lands will be granted. Use rights: The rights of the dwellers extend to extracting Minor Forest Produce, grazing areas etc. Relief and development rights: To rehabilitate in case of illegal eviction or forced displacement and to basic amenities, subject to restrictions for forest protection. Forest management rights: It includes the right to protect, regenerate or conserve or manage any community forest resource which the Significance of Forest Rights Act (FRA) 2006 Community rights and rights over common property resources (CPR) have been recognized for the first time Individual rights of the tribal and marginal communities have been highlighted by this act along with other rights too The concept of revenue villages have surfaced as the act talks about the conversion of all forest villages, old habitation, un-surveyed villages and other villages into these. It ensures the livelihood and food security of the Forest Dwellers Scheduled Tribes and Other Forest Dwellers and strengthens the conservation regime of the forest. Community Forest Resources are monitored and managed in a way that protects marginal communities’ traditional linkages with these. it is known how these communities have always traditionally utilized the forest resource for sustainable development. This act in a way protects intellectual property rights and the traditional knowledge related to cultural diversity and biodiversity It expands the mandate of the 5th & 6th Schedules of the Constitution that protect the claims of indigenous communities over tracts of land or forests they inhabit. The displaced communities’ rights are secured by the forest rights act 2006.  The alienation of tribes was one of the factors behind the Naxal movement, which affects states like Chhattisgarh, Odisha and Jharkhand.The Act through identifying IFR and CFR tries to provide inclusion to tribes.  The rights of marginal and tribal communities over developmental activities are also recognized and secured by FRA 2006 Forest rights can also be claimed by any member or community who has for at least three generations (75 years) prior to the 13th day of December, 2005 primarily resided in forest land for bona fide livelihood needs. The act will ensure that people get to manage their forest on their

Financial instruments such as loans has made our lives so much easier in the last decade. A loan makes it possible for us to achieve our dreams, be it purchasing your dream car or a house. Banks have launched new loan schemes over the years to suit the financial needs of its customers and one such loan is loan for commercial shop purchases. This loan offers finances to an individual who wants to purchase a commercial property to set up their shop or business. State Bank of India (SBI) offers a loan scheme for present and prospective owners of shops or offices or show-rooms or service centres to avail a loan for the purchase of shop premises or furniture or modernization of existing premises. State Bank of India is India’s largest bank with over 200 years of history with the highest amount of assets, deposits, profits, branches, customers and employees. SBI is the only Indian Bank to be featured in Fortune Global 500 list of companies in 2011 and is ranked 61st in the list of Top 1000 Banks in the World by ‘The Banker’ as on July 2011. Difference between loans for residential property purchase and commercial shop purchase LTV ratio– LTV ratio or loan-to-value ratio describes the ratio of the loan to the value of the property purchased. While for residential properties, the LTV ratio is around 75-85%, for commercial properties, the ratio is much lesser at 55%. Rate of interest- The rate of interest is higher for commercial property loans when compared to residential property loans. Loan tenure– The maximum loan tenure for commercial properties is usually restricted to 10 years while the loan tenure offered for residential properties can go up to 25-30 years. Processing fee– The processing fee charged for commercial property loans is much higher when compared to the processing fee for residential property loans. The usual processing fee for residential property loans is capped at Rs.10,000 while the standard processing fee for commercial loans is 1% of the loan amount. Eligibility A person can avail the SBI loan for setting up of shop or office in present and prospective owners of shops, offices, showrooms, training centres, service centres, garages, Chartered Accountants, Company Secretaries, Consultants and other professionals. The scheme can also be extended for services such as travel agencies, caterers, hotels, eateries, beauty salons, etc. The applicant could be an individual, firm, partnership, trust, franchisee, company or LLP. The purpose of using the loan amount for the following purposes:• Purchase of new/old shops/establishments/offices.• Modernization/expansion of establishments/shops, etc.• All furniture/fixtures, electrical fittings and other accessories required for shops/showrooms/offices. Nature of Loan The SBI provides loan for shops and offices as a term loan for a quantum of upto Rs.20 lakhs. Promoters require to contribute margin of upto 25%, in case of purchase of new property and margin of upto 40% in case of purchase of the old property. The interest rate for the loan is floating based on the Base rate of the Bank. A person can avail the repayment tenure of upto 7 years including moratorium period of 6 months under the scheme. The asset purchased must be pledged to the bank under hypothecation/pledge/mortgage/assignment of the assets. Further, all assets for the loan must insure for the full value of the loan until repayment. FAQs Loans for purchase of Commercial Shops/Properties in India It can be very hard to get a commercial loan if you have a poor credit score. If you have a good score and a credit history, you can easily get a commercial loan. How are figures for commercial loan rates determined? The loan issuing authority will look into your personal credit rating and also the rating of your business. This will affect the interest rate on your commercial loan and also the term of theloan.

Online portals are digital gateways aimed to cater for the masses of a state or country. These portals help citizens avail a number of government services online from anywhere at any time. In order to bring the convenience of digital transformation close to its residents, the Goa Government launched the Goa online official website. Through this user-friendly platform, residents of the State can avail a host of services, such as issuance of certificates and online electricity and water bill payments. Goa online portal: An overview Goa online portal is an initiative of the Department of Information Technology (DeITY), Goa. It is an e-District Mission Mode Project (MMP) that comes under the National e-Governance Program (NeGP) of the Government of India. The Department of Information Technology (DoIT) is the nodal department for its implementation. Goa online portal works towards enhancing the electronic delivery of all citizen-centric utility services at the district or sub-district level. Not only this, citizens can also check and apply for several government schemes on this platform. Now, let’s talk about the services offered by this user-friendly website. Goa online portal: Services offered Residence certificate Electricity bill payment Water bill payment Labour and employment card Divergence certificate Property register Income certificate Objective of the Goa e-Services Portal Effective delivery of services with improved service levels. Delivery of services through Common Service Centers (CSCs) by using a common infrastructure of SWAN, SDC and SSDG. Development of applications to be received at the State Data Centers for delivery of services. Distribution of all public services at District or Sub District level in electronic form through State Portals by using the State Service Delivery Gateway. Providing easy, anytime access to Government Services (both information and transactional) to ensure reliability, efficiency, transparency and accountability. Lessening the number of visits of citizens to a Government office/department for availing the services. Reducing legislative burden and service fulfilment time and costs for the Government, Citizens and business. Reducing the direct interaction of citizen with the Government and encourage ‘e’-interaction and effective communication through the portal. Enhancing knowledge and image of the Government and its constituent Departments. Goa Online e-Services Portal Registration Provide Login Details Step 1: You need to provide login details for applying through any of the services. Existing User Registration Step 2: In case of an existing user, enter login id, password and captcha and then click on the “Submit” button. New User Registration Step 3: If you are a new user click on ” Register” tab the current page will be redirected to the login application page where you have to fill the details for user registration. Complete the Details Step 4: Now, enter the details that are marked as compulsory and then click on the “ Generate OTP” button and then you will receive the OTP enter it and then click on “Submit” button. Choose the Certificate or Services Step 5: Select the certificate or services, and then you can start applying for the appropriate services. Upload the Document Step 6: After completing the application form and then upload the required scanned documents. FAQs How to download my residence certificate on the Goa online portal? You can visit the Goa online portal website and track the status of your application using your acknowledgement number. How to register my property on the Goa online portal? You can visit the Goa online portal website and click on services. You can register your property there.

To highlight the enormous contributions made by MSMEs to the accomplishment of the Sustainable Development Goals of the United Nations, the United Nations General Assembly declared June 27 as “Micro-, Small-, and Medium-sized Enterprises Day” (A/RES/71/279) (SDGs). 90 percent of enterprises, 60 to 70 percent of jobs, and 50 percent of global GDP are MSMEs. As the foundation of all societies, they support livelihoods and local and national economies, particularly for the working poor, women, young people, and vulnerable groups. World Micro, Small, and Medium Enterprises (MSME) Day is celebrated on June 27th every year. ​Founded by the United Nations General Assembly to raise awareness of the tremendous contributions of enterprises to the achievement of the United Nations Sustainable Development Goals (SDGs). SMEs account for 90% of businesses, 60 to 70% of employment and 50% of GDP worldwide, according to the World Bank. As the backbone of societies everywhere they contribute to local and national economies sustaining livelihoods for the very poor among us. 27th June – MSME Day On April 6, 2017, the 74th session of the United Nations General Assembly adopted a resolution designating June 27 as Micro, Small, and Medium-sized Enterprises (MSME) Day. The resolution’s premise was that MSMEs play a critical role in achieving the Sustainable Development Goals, particularly in supporting innovation, creativity, and decent work for all. MSMEs and their contributions to the global economy are likely to be highlighted on MSME Day. Significance of Micro, Small, and Medium-Sized Enterprises Day MSMEs have long faced challenges, from obtaining financing to running their enterprises. However, the supply chain difficulties are recent. These have an influence on every aspect of our existence. The supply chain ensures that all things, from toothpaste to food, reach us efficiently and economically. The supply chain is critical to company operations, including raw material procurement, sales, and demand forecasting. If a company’s supply chain fails, its entire existence is jeopardised. India is seeking to capitalise on potential economic possibilities, but supply chain issues have hampered short-term growth and cast doubt on long-term prospects. Every industry and sector must be willing to reinvent itself. MSME Day 2022 will focus on these essential concerns in order to avoid disruptions from delaying efforts to achieve sustainable and inclusive growth. The topic of MSME Day 2022 is “Building a Better World,” and the programming for the day demonstrates how businesses and organisations can achieve just that. MSME Day 2022, which will feature prominent government authorities, business executives, and professionals, will debate the new normal on June 27. Theme of Micro, Small, and Medium-Sized Enterprises Day The United Nations has not yet announced the theme for Micro, Small, and Medium-sized Enterprises Day in 2022. The subject for this year was ‘MSME 2021: vital to an inclusive and sustainable recovery.’ This year’s MSME Day theme is a little different. The globe is in turmoil once more, but this time it is due to seismic upheavals in economic conditions rather than a pandemic. The Russia-Ukraine conflict, supply chain interruptions, inflation, skyrocketing commodity prices, and food shortages all threaten to destroy the world’s fragile recovery. According to one International Rice Research Institute assessment, there would be 36 million less tonnes of rice – enough to feed 500 million people. MSMEs have long faced challenges, ranging from loan availability to ease of doing business. However, the supply chain issues are relatively recent. These have an influence on every element of our existence. The supply chain guarantees that all things reach us effectively and inexpensively, from our toothpaste to the food we consume. Everything from raw material procurement to sales and demand forecasting is dependent on the supply chain for enterprises. When a company’s supply chain fails, its basic foundation is jeopardised. MSME Day 2022 will dig into these critical factors to ensure that disruptions do not derail the goal for sustainable and equitable growth. MSME Day 2022 material demonstrates how businesses and organisations may become more resilient and contribute to a better society. On June 27, MSME Day 2022 will bring together key government officials, industry executives, and experts to discuss the way to the new normal. Significance of MSME Day with respect to India India is moving to exploit economic possibilities, but supply chain problems have hampered near-term growth and cast doubt on long-term expectations. Every industry and sector must be prepared to reinvent themselves. We are focusing on the need to “Strengthen India’s supply chain to power self-reliant MSMEs” on MSME Day 2022. Policy, technology, leadership, and skills, as well as the entire ecosystem, must build new capabilities, complement current ones, and prepare for a new future. A $1 trillion economy cannot be realised with ageing infrastructure, suboptimal operations, and a disregard for people and society. MSME Day 2022 will dive into these critical factors to ensure that disruptions do not derail the goal for sustainable and equitable growth. MSME Day 2022 material demonstrates how businesses and organisations may become more resilient and contribute to a better society. On June 27, MSME Day 2022 will bring together key government officials, industry executives, and experts to discuss the way to the new normal. MSMEs in the GAIN Strategy Seeing how important MSMEs are to reducing malnutrition and improving food systems around the world, GAIN partners with governments, the civil society, among others, to provide targeted interventions towards MSMEs to strengthen their capacity to produce and make safe nutritious foods accessible and affordable to the very poor.  GAIN has developed targeted interventions for MSMEs to strengthen their expertise, knowledge and approach to include nutritious and healthier meals to their food processing and business operations. These interventions range from technical assistance, grant financing, business to business linkages, technical support for product formulation, capacity building, supply of premixes and fortificants, food safety best practices, innovation challenges, and more. Historical Background of MSME’s On April 6, 2017, the 74th United Nations General Assembly passed a resolution declaring June 27 as Micro, Small, and Medium-sized Enterprises (MSME) Day. The resolution was founded on the notion that MSMEs are critical to