Financial services in overseas procurement : The government has also allowed three private sector banks to provide financial services for overseas procurement. The government is of the view that these banks may be allowed to issue letters of credit worth Rs 2000 crore for a period of one year on the capital and revenue side.
financial services in overseas procurement: Important news for customers of HDFC, ICICI and Axis Bank. The central government has made a big announcement regarding these banks. Actually, the Ministry of Defense has given big responsibility to three private sector banks – HDFC Bank, ICICI Bank and Axis Bank. These three banks will now be able to provide letters of credit and direct bank transfer business for overseas purchases. Let us tell you that till now only government banks had this right, but now these three private banks will also have these rights.
Private banks got big rights
This is the first time that the government has also allowed three private sector banks to provide financial services for overseas purchases. The government is of the view that these banks may be allowed to issue letters of credit worth Rs 2000 crore for a period of one year on the capital and revenue side.
Defense Ministry announced
Announcing this, the Defense Ministry said that select banks can be approved for Letters of Credit business of Rs 2,000 crore. In this, all banks can allocate Rs 666 crore on both capital and revenue front for one year. According to the Ministry of Defense, the performance of these banks will be regularly monitored so that further action can be taken as per the need.
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