That is according to additional opening of allocation of Authorities enterprise to personal sector banks by the Division of Monetary Companies.
On this regard, a memorandum of understanding (MoU) has been signed with every of those three banks lately by PCDA, New Delhi on behalf of MoD.
For a interval of 1 yr, on concurrent foundation the chosen banks could also be allotted with LC enterprise of Rs 2000 Crore, every on the capital and income aspect (Rs 666 Crore for every financial institution underneath each capital in addition to Income).
Furthermore, the efficiency of those Banks shall be monitored usually in order to take mandatory additional motion as required.
Until now, solely authorised public sector banks had been utilised to supply these providers to MoD. With this, for the primary time, three personal banks have been given permission to supply monetary providers for abroad procurement by MoD.