New Delhi: The State Bank of India (SBI) has signed a Memorandum of Understanding (MoU) with the Land Ports Authority of India (LPAI) to provide banking services across 26 land ports located along India’s borders with Nepal, Bangladesh, Bhutan and Myanmar.
Focus on Trade and Passenger Movement
According to the latest data from 2023-24, these land ports have seen trade volumes of over Rs 70,952 crore, with passenger movement reaching 30.46 lakh annually. Over the last decade, trade through these ports has grown fifteenfold, while passenger traffic has increased eighteenfold. LPAI currently operates 15 land ports across eight states and has 11 more sanctioned in states including Uttar Pradesh, Bihar, Mizoram, Uttarakhand, and West Bengal.
With cross-border movement becoming a significant aspect of India’s regional trade strategy, the collaboration is positioned to meet growing banking needs at these transit hubs. Presently, the ports collectively handle close to Rs 71,000 crore in foreign exchange trade.
Banking Support for Border Infrastructure
Under the MoU, SBI will offer services to both individuals and businesses, including forex transactions, bulk cargo insurance, and digital banking products. Over the next six months, the bank will assess and expand its offerings at these ports in line with the trade and transit demands. Employees of LPAI will also receive corporate salary packages from SBI, which include benefits like personal accident insurance and locker rent concessions.
