Urging banks to work in close coordination with Department of Commerce and export promotion councils for trade facilitation and early resolution of problems faced in trade, Secretary of Department of Financial Services, Vivek Joshi has advised banks to classify issues faced by them in different categories and indicated that they may consider seeking necessary regulatory guidance from RBI and also develop a standard operating procedure through Indian Banks Association (IBA).
Vivek Joshi chaired a review meeting to address banking and insurance related issues faced by exporters and importers in New Delhi. The meeting was attended by senior officers from Ministry of External Affairs, Department of Commerce, and Ministry of Finance. Functionaries of Reserve Bank of India (RBI) and Insurance Regulatory and Development Authority (IRDAI) along with Chairman, State Bank of India (SBI) and senior executives of major commercial banks joined the meeting.
During the meeting, specific operational issues, viz., delay in issuance of e-bank realisation certificates, overdue letters of credit, etc. were discussed. During the meeting, banks informed that after ensuring necessary due diligence and compliance with regulatory directions, trade transactions are continued to be facilitated by them. It was noted that in some cases, banks have proactively engaged with their clients and resolved the matter. Further, to ensure a seamless process, banks were advised to engage with clients to expedite resolution of their problems while appropriately examining compliance requirements.
