The finance ministry on Monday asked banks and insurance companies to expeditiously resolve issues of exporters and facilitate overseas trade.
The meeting chaired by Financial Services Secretary Vivek Joshi was attended by senior officers from the Ministry of External Affairs, the Department of Commerce and the Ministry of Finance. They discussed issues faced by exporters and importers.
During the meeting, Joshi advised banks to classify issues faced by them in different categories and indicated that they may consider seeking necessary regulatory guidance from the RBI and also develop a standard operating procedure through the Indian Banks Association (IBA), an official statement said.
Functionaries of the Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority (IRDAI), the chairman of the State Bank of India (SBI) and senior executives of major commercial banks were also part of the meeting.
Insurance related issues faced by traders were discussed with IRDAI and progress made on those issues were informed by IRDAI, the statement said.
Joshi requested banks to work in close coordination with the Department of Commerce and export promotion councils for trade facilitation and early resolution of problems faced in trade.
Financial services such as trade finance, banking and insurance have a very important role to play in facilitation of Indian trade with all partner countries.
The government along with sectoral regulators, the RBI and the IRDAI, regularly engages with important stakeholders to understand operational problems faced by them and work out solutions.
Specific operational issues, vis-a-vis delay in issuance of e-bank realisation certificates, overdue letters of credit among others were also discussed, the statement said.
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 said.
It was noted that in some cases, banks have proactively engaged with their clients and resolved matters.
Further to ensure a seamless process, banks were advised to engage with clients to expedite resolution of their problems while appropriately examining compliance requirements, the statement said.