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SBI Partners with LPAI to Strengthen Banking Services for Border Trade.

Banking & Finance | Dated: 05 May 2025

In April 2025, State Bank of India (SBI), headquartered in Mumbai (Maharashtra), signed a Memorandum of Understanding (MoU) with the Land Ports Authority of India (LPAI), based in New Delhi (Delhi). LPAI is an autonomous body under the Ministry of Home Affairs (MHA). The MoU aims to improve the banking services infrastructure at 26 land ports located along India's borders with Nepal, Bangladesh, Bhutan, and Myanmar.

🎯 Key Highlights:

  • - The MoU was signed by S N Panigrahi, Deputy General Manager (DGM) of SBI, and Vidyadhar Jha, Director (Operations) of LPAI.
  • - SBI will introduce Foreign Exchange (Forex) services, Letter of Credit (LC)/Bank Guarantee (BG), bulk cargo insurance, and digital banking solutions like YONO 2.0 and e-Trade at land ports within six months. The initiative aims to boost annual border trade from ₹80,000 crore (2025) to ₹2 trillion by 2030.
  • - Around 1,900 LPAI employees will receive SBI’s corporate salary packages, which include personal accident insurance, loan facilities, and discounted locker rentals. These benefits will also be extended to over 5,000 personnel from the BSF and Customs Department.

💡 Other Important Facts:

  • (i) LPAI currently manages 15 land ports across 8 border states and plans to construct 11 additional ports in states such as Uttar Pradesh, Bihar, Mizoram, Uttarakhand, and West Bengal.
  • (ii) The partnership is set to streamline cross-border transactions and support management of ₹71,000 crore worth of forex trade annually.
  • (iii) The MoU signifies a joint effort by SBI and LPAI under the Ministry of Home Affairs (MHA) to strengthen financial infrastructure and promote ease of doing border trade across India’s northeastern and eastern borders.

📚 Test Your Knowledge:

Recently, which Indian bank signed an MoU with LPAI to enhance banking services at land ports across India’s borders?

Correct Answer: SBI

🚀 Quick Recap:

About Land Ports Authority of India (LPAI)

  • Chairperson : Aditya Mishra
  • Headquarters: New Delhi