5 Significant Roles of Banking Institution in International Trade

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‘International Trading has always been top sources of boosting sales for numerous of trading businesses in the country. Although, importing or exporting is common these days but international trade consists of the risk of exchange and thus, it is advisable to function exchange or payment of the goods or services through banking institutions” pointed by Chand Sharma, Hpj Exim (Director) and Puneet Kandpal, Hpj Exim (Director). It is the leading international trading company all over the country. Distinguished roles of banking institution are described by these experts of international trading through their experience.

HPJ Exim Pvt Ltd

Distribution and Currency

Banking institution operates the distribution of cash in required currency through distribution, safe custody of stock and order management. These functions of bank are significant part of international trade reason being the transaction related to international trade are often cash oriented.

External Debt

RBI, Reserve bank of INDIA manages the external debts of the country by cooperating international trading companies around the world. The trading arrears in aspect of International trading lies in the hands of RBI Reserve bank of INDIA rather than federal ministry.

Money Stability

Price stability or Money stability is the significant function of Banking Institutions in order to maintain money for medium of exchange store of value measure of value and deferred payments. However, the ability of any banking Institutions can be judged through its capability of stimulating monetary flow in International trading businesses.

Foreign Exchange Management

Foreign exchange management refers to the fulfilling and developing foreign exchange resources, however, variation of the lack of stabilization in short-term capital show. The RBI, Reserve Bank of India, is under the obligation to take care of use of scarce foreign exchange resources and setting up economic priorities.

Debt Management

Since, the banking institution/RBI, Reserve Bank of India signed up for mobilizing funds for international trading to the federal government, however, also holds the obligation or responsibility of maintaining external and domestic debts along with federal ministry of  Finance.

These were the various roles/responsibilities/ obligations of banking institutions in aspect of international trading in the country.” Although, exchange can be done without involving the bank institution but it is advisable to involve or exchange through bank for a safe side” recommended the directors of Hpj Exim Pvt Ltd.


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