(a) whether the SBI has shifted its Forex Bureau from Kolkata;
(b) whether other Banks are also following suit;
(c) if so, the reasons therefor; and
(d) the steps taken by the Government to prevent these banks from shifting their Forex
Bureau from Kolkata?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI BALASAHEB ViKHE PATIL):
(a) to (c) State Bank of India, (SBI) has reported that while its Foreign Department
continues to (unction at Kolkata, its inter-bank foreign exchange dealing and cover
operations functions were shifted to Mumbai with effect from 12th October 1998, as part
of the Bank`s integration of its treasury operations. SBI has further reported that this
has enhanced the efficiency and effectiveness of the Bank`s treasury operations,
substantially improved the yield on the deployment of the Bank`s surplus rupee resources
and resulted in substantial interest income over and above the foreign exchange income of
the Bank. The bank has also reported that its forex turnover has gone up substantially
since the re-organization of its treasury operations. According to the information available
with Government of India and Reserve Bank of India, no other public sector bank had its
Foreign Exchange Division in Kolkata.
(d) Such decisions are taken by Banks themselves in their best commercial interest.