DFS Secretary chairs meeting to review banking and insurance related international trade matters; Functionaries of RBI, IRDAI, SBI Chairman, and senior executives of major commercial banks were present in meeting
FinTech BizNews Service
Mumbai, February 6, 2024: Dr. Vivek Joshi, Secretary, Department of Financial Services, Ministry of Finance, chaired a review meeting to address banking and insurance related issues faced by exporters and importers in New Delhi, today.
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.
Financial Services such as trade finance, banking, and insurance have very important role to play in facilitation of Indian trade with all partner countries. Government along with sectoral regulators, RBI and IRDAI, regularly engages with important stakeholders to understand operational problems faced by them and work out solutions.
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.
Dr. Joshi 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).
Insurance related issues faced by the traders were discussed with IRDAI. Progress made on those issues were informed by IRDAI.
Dr. Joshi requested 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.
