Banks to work closely with Department of Commerce and Export Promotion Councils for Export Facilitation

Dr. Vivek Joshi, Secretary, Department of Financial Services, Ministry of Finance, chaired a review meeting in New Delhi today to discuss banking and insurance challenges confronting exporters and importers.

Senior officers from the Ministry of External Affairs, Department of Commerce, and Ministry of Finance attended the meeting. The conference was attended by Reserve Bank of India (RBI) and Insurance Regulatory and Development Authority (IRDAI) officials, as well as the chairman of the State Bank of India (SBI) and top executives from large commercial banks.

Financial services such as trade finance, banking, and insurance play an essential role in facilitating Indian trade with all partner countries. The government, in collaboration with sectoral regulators such as the RBI and IRDAI, meets with important stakeholders on a regular basis to understand their operational challenges and devise solutions.

Specific operational difficulties, such as delays in the issuance of e-bank realisation certificates and overdue letters of credit, were mentioned. During the conference, banks stated that they would continue to enable trade transactions after ensuring the necessary due diligence and regulatory compliance. It was highlighted that in some circumstances, banks proactively interacted with their clients to resolve the issue.

Furthermore, to ensure a seamless procedure, banks were recommended to communicate with clients to accelerate problem resolution while thoroughly reviewing compliance standards.

Dr. Joshi encouraged banks to categorise the difficulties they confront and suggested that they seek regulatory assistance from the RBI as well as build a standard operating procedure through the Indian Banks Association.

Insurance-related issues raised by dealers were examined with IRDAI. IRDAI kept them updated on the status of these concerns.

Dr. Joshi asked that banks cooperate closely with the Department of Commerce and export promotion councils to facilitate commerce and resolve trade issues as soon as possible.