In line with opening of allocation of Government business to Private Sector Banks by the Department of Financial Services, Ministry of Defence has assigned HDFC Bank, ICICI Bank and Axis Bank to provide financial services in form of Letter of Credit (LC) and Direct Benefit Transfer (DBT) business for overseas procurement by the Ministry. Till now, only authorised Public Sector Banks were utilised to provide these services to the Ministry. Allocation of LC and DBT business to Private Sector Banks is expected to bring in greater competition and efficiency in the banks.
This information was given by Raksha Rajya Mantri Shri Ajay Bhatt in a written reply to Smt Geeta alias Chandraprabha in Rajya Sabha today.