MoD says 3 pvt banks can provide financial services in overseas procurement

The on Thursday allowed three private sector to provide financial services to it for overseas procurement of military hardware.

The are Ltd, ICICI Bank and Axis Bank.

Till now, only authorised public sector were utilised to provide services like issuance of letter of credit and direct bank transfers to the ministry for overseas procurement.

In line with further opening of allocation of government business to private sector banks by the department of financial services, the ministry has assigned three private sector banks to provide the LoC and direct bank transfer business for overseas procurement, an official release said.

“The selected banks may be allocated with LC business of Rs 2,000 crore, each on the capital and revenue side, for a period of one year on concurrent basis (Rs 666 crore for each bank under both capital as well as Revenue),” the ministry said.

“The performance of these banks will be monitored regularly so as to take necessary further action as required,” it said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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