State Bank of India (SBI) signed a Memorandum of Understanding (MoU) with the Land Ports Authority of India (LPAI) to strengthen banking services at 26 land ports on India’s borders with neighboring countries.
Key Highlights of MoU
- Objective: To boost India’s border trade ecosystem by providing modern banking solutions at land ports.
- Current trade at land ports: ₹80,000 crore.
- Targeted trade by 2030: ₹2 trillion.
- SBI’s presence at land ports aims to:
- Enhance trade transactions.
- Support India’s vision of Viksit Bharat by 2047.
- Strengthen India’s financial and trade infrastructure at borders.
Employee Benefits
- ~1,900 LPAI employees will benefit under SBI’s Corporate Salary Package, which includes:
- Customized loans and financial products.
- Personal accident insurance.
- Locker rent concessions.
- Other government agencies covered (~5,000 employees total):
- Land Border Health Units (Ministry of Health & Family Welfare).
- Border Guarding Forces (BGF), SSB, BSF.
- Border Roads Organisation (BRO), Bureau of Immigration (BOI), Customs & Indirect Taxes Department.
Banking Services to Be Expanded
In the next 6 months, SBI plans to offer:
- Forex transactions.
- Letters of Credit (LC) / Bank Guarantees (BG).
- Bulk cargo insurance.
- Digital banking products.
- A broad range of other banking services at land ports.
Significance
- Will modernize and formalize banking services at critical international trade gateways.
- Will provide reliable financial access to businesses, individuals, and government staff at borders.
- Aligns with India’s push for trade expansion, financial inclusion, and border infrastructure development.
About Land Ports Authority of India (LPAI)
- Type: Statutory body under Ministry of Home Affairs, Government of India.
- Established by: Land Ports Authority of India Act, 2010.
- Operational since: 1 March 2012.
- Main responsibilities:
- Develop, maintain, and manage border infrastructure.
- Operate Integrated Check Posts (ICPs) and Inland Customs Posts.
- Manage projects like the Shri Kartarpur Sahib Corridor.
LPAI Network & Trade Figures
- Current operational ports: 15 land ports across 8 border states (Nepal, Bangladesh, Bhutan, Myanmar).
- Upcoming ports: 11 more approved in states like Uttar Pradesh, Bihar, Mizoram, Uttarakhand, West Bengal.
- Trade handled (FY23-24): ₹70,952 crore.
- Passenger movement (FY23-24): 30.46 lakh people.
- Growth over the past decade:
- 15-fold increase in trade.
- 18-fold increase in passenger traffic.
- Annual forex trade at land ports: ~₹71,000 crore.
- Annual cross-border passenger movement: ~31 lakh people.