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India Today
7 days ago
- Business
- India Today
Paper to port: How Bills of Lading Bill signals India's next shipping logistics leap
In a largely empty House, amidst the din of a post-lunch Opposition walkout on July 21, the Rajya Sabha quietly passed a piece of legislation that could transform India's maritime logistics and global trade flows. The Bills of Lading Bill, 2025, which replaces the archaic 169-year-old Indian Bills of Lading Act of 1856, might lack the dramatic political appeal but its implications could ripple far deeper than most bill was cleared by the Lok Sabha during the budget session in March and will now go for the president's assent before becoming a its heart, the new legislation aims to modernise how India handles the most fundamental document in global shipping—the bill of lading (BoL). For centuries, this humble document, often printed on crisp bonded paper, has served as the holy trinity of international commerce: a receipt of goods, a contract of carriage and, most crucially, a document of title. Whoever held it—physically—owned the cargo. Until Bills of Lading Bill legally recognises electronic bills of lading, enabling shipping lines, freight forwarders, banks and importers/exporters to digitally issue, endorse and transfer BoLs. In essence, it does to international cargo what the Unified Payments Interface (UPI) did to money: it removes the friction of physical presence and accelerates trust through secure digital systems. The bill's passage comes not a moment too soon. India is working aggressively to reduce logistics costs, currently hovering around 13-14 per cent of the GDP, well above global averages. If the country is to become a serious node in resilient global supply chains, it must offer more than cheap labour and tax incentives. It must offer speed, predictability and interoperability. And that's where the BoL reform experts have long flagged the use of physical BoLs as a bottleneck in India's export value chain. When a container travels faster than the paper that certifies its ownership, cargo sits idle at ports, buyers incur demurrage, and insurers pull their hair out over liability gaps. In many cases, the absence or delay of BoLs forces importers to issue Letters of Indemnity (LoIs), exposing banks and businesses to legal and financial risk. These frictions aren't just technical—they're economic government has finally responded with an overhaul backed by international best practices. The new law aligns with the UNCITRAL Model Law on Electronic Transferable Records (MLETR)—a global framework adopted by countries such as Singapore, the UK and Bahrain to facilitate legally valid electronic documents in trade and shipping. It also syncs with India's broader Gati Shakti logistics platform, the National Logistics Policy and digital trade initiatives such as the Unified Logistics Interface Platform (ULIP).'This bill is not a procedural tweak—it's a statement of intent,' said a senior official in the shipping ministry. 'We are signalling to the world that India will no longer be held back by 19th-century processes for 21st-century trade.'Data from the Digital Container Shipping Association (DCSA) suggests that global adoption of electronic BoLs could save over $4 billion annually, not to mention the environmental savings from reduced paper, courier transport and redundant handling. Indian shippers stand to gain even more, especially in time-sensitive sectors such as textiles, pharmaceuticals and perishables, where even a 24-hour delay can mean loss of market or spoilage of private sector has been cautiously optimistic. Platforms such as TradeLens (a now-defunct Maersk-IBM venture), CargoX and Bolero have already rolled out blockchain-based BoL solutions, but without a domestic legal framework, adoption in India remained stunted. With this law now passed, digital BoLs can be issued with legal confidence, negotiability and enforceability within Indian courts and regulatory challenges remain. Critics such as Biju Janata Dal MP Niranjan Bishi raised concerns in the Rajya Sabha that loosening title transfer protocols without airtight cybersecurity could lead to fraud, data leaks or forged documents. Moreover, the real test will lie not in the law's text but its implementation. India's port systems remain unevenly digitised; many freight forwarders are small, informal operators who lack the tech backbone to adopt eBoLs overnight. Customs, excise and judicial authorities will also need training and updated protocols to recognise and process digital documents in disputes or enforcement also the international angle. For digital BoLs to be truly frictionless, cross-border recognition is essential. If Indian exporters are sending goods to countries that don't yet legally recognise eBoLs, or demand physical documents for banking, the full benefits of the new law may remain unrealised. Much like the journey of UPI's internationalisation, this too will require careful diplomatic and trade the government's strategy seems clear. By pushing through the Bill now—despite the Opposition walkout and with minimal fanfare—it is laying the plumbing for India's emergence as a digitally savvy, high-efficiency trading power. With 90 per cent of India's trade by volume moving via sea, the digitisation of maritime paperwork could bring about a silent revolution in how India trades, settles disputes and scales its global might dismiss the bill as a technical upgrade. But in the complex chessboard of global trade, even small moves—when executed well—can change the game. The Bills of Lading Bill, 2025 is one such move. Now, it's up to the shipping lines, exporters, fintech platforms and customs authorities to make the most of to India Today Magazine- Ends advertisement
Yahoo
14-05-2025
- Business
- Yahoo
‘Significant doubt' revealed over Bank of London's ability to keep operating
The Bank of London, the fledgling clearing bank formerly backed by Peter Mandelson, has revealed it is under investigation by UK regulators, with auditors saying the fallout could throw 'significant doubt' over its ability to keep operating. The news is a fresh blow for the troubled fintech, which has lost its founder and leading board members, including Lord Mandelson and US private equity boss Harvey Schwartz, and halved its workforce since being thrust into the spotlight in September over an embarrassing winding-up petition by the UK tax authority over unpaid debts. The Bank of London (BoL) accounts, filed seven months late, now reveal that it is under investigation by the Bank of England's regulatory arm, the Prudential Regulation Authority (PRA), over potential breaches that pre-date the autumn debacle. Related: Calls for Russia's frozen assets held in Belgium to be used in rebuilding Ukraine 'The firm has been notified by the PRA that it is under investigation in relation to certain historical matters that occurred prior to the change in ownership of the group,' accounts filed at Companies House said. A Jersey-based firm, now known as Fellesskap Group & Holdings, took over as its parent company in May 2024. BoL said it was too early to say how much money it may have to put aside to deal with the continuing investigation. It said it was cooperating with the PRA and had launched its own internal investigation 'into the matters in question'. The revelations came as the bank reported a £12m loss for 2023, in accounts for which auditors at EY would only give qualified support, in part owing to 'inadequate historical records' over a share option plan for staff. Auditors are now concerned about the bank's ability to keep operating. EY said there were questions over the potential fallout of the regulatory investigation and whether the company would be able to raise adequate funding in future. 'There are material uncertainties relating to events or conditions that … may cast significant doubt on the company's ability to continue as a going concern,' the accounts said. As a clearing bank, the BoL does not offer loans but provides clearing and settlement services for business customers, providing the plumbing that allows transactions and payments to take place. It became only the second clearing bank to enter the UK market in 250 years when it launched in 2021, with an aim of disrupting the big four – NatWest, Lloyds, Barclays and HSBC – which maintain a stronghold on this part of the UK financial system. BoL was valued at $1.1bn (£826m) in 2023 and was previously known for its ties to the Labour party. Its founder, the former Barclays executive Anthony Watson, served on the party's business and enterprise advisory council before last summer's general election, while Mandelson, now Britain's ambassador to the US, served on the board as BoL's deputy chair before stepping down last year. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
