Question
Recently, which ministry has allowed HDFC Bank, Axis
Bank and ICICI Bank to provide financial services in overseas procurement?Solution
- These private banks will provide Letter of Credit and direct bank transfer business for overseas procurement by the defence ministry. These banks may be allocated with LC business of Rs 2,000 crore, each on the capital and revenue side, for one year on concurrent basis (Rs 666 crore for each bank under both capital, as well as revenue).
- Until now, only authorised public sector banks were allowed to provide these services to the defence ministry.
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