“Unlocking Opportunities: How IBA Registration Revolutionizes the Landscape for Transport Operators in India”

IBA: Indian Bank’s Association

• Condition
• Benefits
• How To Apply

#Conditions:

Type of Vehicles: Heavy Commercial Vehicle, Light Commercial Vehicle

Minimum Vehicles: 7 HCV or 2 LCV

Vehicle Age: not > 15 years old

This scheme is applicable, if you’re engaged in transport business from more than 2 years.

NOTE: Dumpers, tippers, tractors and tankers are not considered for the Association’s recommendation.

1. Pvt. Ltd or Public Ltd. — Vehicle should reg. on Co. name
2. Proprietorship/partnership — Vehicle should reg. on firm/proprietor/partners
3. Trucks valuation should be mentioned in the asset side of audited balance sheet.
4. Break-up value should be shown in the schedule of fixed assets.
5. ITR and audited accounts for the last 2 years should be submitted.
6. For Public/Private/Partnership/Proprietorship — Profit & loss account, Balance sheet, Schedule of fixed assets should be audited by charted accountants.
7. Capital requirement for this scheme should be more than 20 Lakhs.
8. Transporters should have their own office or branch or agent who is authorized to issue LR
9. Branches and godowns should be in more than one state.
10. Goods transport business should be >50% of the total business of the firm.
11. IBA will ask to change name in these cases:

11.1. The name belongs to transport operator already recommended by IBA.

11.2. The name belongs to transport operator who has already been permitted to apply or approval is pending by IBA.

11.3. The name is not matching with transport business.

12. Debt to equity ratio should be within the range of 10:1.

13. Current assets to current liabilities ratio should be above 1.

14. Application will not be considered, if firm/Co. has incurred loss consecutively for the last two years.

However, due to Covid-19 pandemic, the managing committee of association, as a special measure has decided that if a firm/Co. has incurred loss consecutively for two years, but after absorption of these losses their “TANGIBLE NET WORTH” remain positive, then the application of such transport operator can be considered, for inclusion/renewal of IBA recommendation to member banks provide the transport operator satisfies various other eligibility requirements as required in the same.

This relaxation will be applicable for consideration of IBA recommendation to member banks, both for the new as well existing cases for renewal up till 31st Mar’24 which will be based on balance sheet for financial year up to 2022–2023.

15. A statement indicating all suit over Rs. 25,000/- each in respect of carriage of goods and other suits over Rs. 25,000/- filed against the transport operator by anyone and pending on the date of application should be furnished

16. 1st Payment to IBA if matches above criteria — Rs. 2625/- to IBA along with duly filled form

17. Rs. 177,000/- (Rs. 45,000/- towards non-refundable and Rs. 105,000/- towards annual fee for 3 years from recommendation date + 27,000/- towards 18% GST)

18. Rs. 105,000/- will be refunded if application refuse. GST will not be refunded

19. Application should be submitted within 6 months from the date of issue of application form

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#Benefits:

“Driving Success: Lesser-Known Benefits of IBA Registration Every Indian Transport Operator Should Know”

Joining the Indian Banks’ Association (IBA) has many benefits for Indian transportation firms. The following are a few advantages:

1. Better brand recognition: IBA registration is a symbol of excellence and dependability. Transport companies may benefit from more clientele and improved brand recognition.
2. Increased compliance: A number of rules must be followed by transport operators who are registered with the IBA. This makes it easier to confirm that they are conducting themselves safely and responsibly.
3. Improved customer service: Transport companies that have registered with the IBA are dedicated to offering top-notch client service. They may be able to develop enduring ties with their clients thanks to this.
4. Financial Inclusion: IBA registration enables access to formal financial services, including bank accounts, credit facilities, and insurance products, for transport businesses. This can assist them in improving their financial management and planning for business expansion.
5. Credit Facilities: Banks may offer a variety of credit facilities to registered transport businesses. The expansion and modernization of their fleet may be aided by working capital loans, auto financing, and other financial options.
6. Simpler Transactions: By registering with the IBA, transport companies can open a bank account that will simplify electronic transactions, such as receiving payments from customers, paying suppliers, and more effectively managing daily financial operations.
7. Record-keeping: Banking services give you a clear, orderly approach to keep track of your financial transactions. This can help transportation companies keep correct records for tax reporting and corporate audits.
8. Safety and Security: Storing cash in big sums is riskier than keeping money in a bank account. It lowers the possibility of theft and offers a safe approach to control the financial aspects of the transportation industry.
9. Digital Payments: IBA registration can make it possible for transportation companies to accept electronic payment methods including UPI (Unified Payments Interface), mobile wallets, and online banking. This encourages a cashless society and makes financial transactions easier.
10. Financial Planning: Banks provide consulting services that can assist transport operators with budgeting, financial management techniques, and investment guidance.
11. Government Programs and Subsidies: Several government programs and subsidies for the transportation industry are connected to established financial systems. Operators may find it easier to receive these benefits with IBA registration.
12. Credibility and Trust: Using a registered bank account can increase the transport operator’s credibility and trustworthiness in the eyes of customers, suppliers, and partners.
13. Online Services: Access to online banking services is made available to transport operators who have IBA registration, allowing them to manage their accounts, conduct transactions, and keep track of their finances from a distance. This is especially useful for individuals with busy schedules.
14. Easier Trade Transactions: Having a registered bank account can make cross-border transactions easier and save money on currency conversion for transport operators engaged in intrastate or international trade.
15. Loan Supporting Paperwork: IBA registration and the related bank statements can be used as crucial loan-supporting documentation when requesting loans or other financial assistance from banks or other financial institutions.

In general, IBA registration is a benefit for Indian transport companies. They may benefit from improved credit availability, improved brand recognition, decreased fraud risk, increased compliance, and improved customer service.

Here are some additional benefits of IBA registration for transport operators in India:

16. Access to training and development opportunities: IBA provides its members with a variety of training and development opportunities. This can assist transportation professionals in honing their abilities and maintaining their competitive edge.

17. Participation in industry events: Throughout the year, IBA hosts a number of industry events. This gives transport operators the chance to network with other industry experts, discover fresh trends, and exchange best practises.

18. Industry advocacy: At the national level, IBA supports the interests of the transportation sector. This makes it easier to make sure that legislators are aware of the issues of the industry.

IBA registration is a beneficial strategy to grow your business if you are a transport operator in India. You can use it to gain access to finance, improve your brand’s reputation, lower the risk of fraud, raise compliance, improve customer service, and gain access to programmes for training and professional development.

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#Process To Apply:

Your Guide to Swiftly Achieving IBA Approval as a Transport Operator in India”

Several variables, such as the thoroughness of the application form, the accessibility of supporting papers, and the workload of the IBA, affect how long it takes for transport companies to obtain IBA registration in India. However, in general, processing an application can take anywhere between 4 and 8 weeks.

Here are the steps involved in getting IBA registration for transport operators in India:

1. Fill out the application for an IBA: You can obtain the application form from the IBA website. It needs to be fully filled out and signed by the transport operator’s designated signer.

2. Offer supporting documentation The application form must be accompanied by the following supporting documents:

• Proof of identity of the transport operator
• Proof of address of the transport operator
• Proof of registration of the transport operator
• Proof of financial soundness of the transport operator
• Proof of compliance with all applicable regulations

3. Pay the application fee

4. The IBA will analyse the application and supporting documentation before making a judgement. It will then decide whether or not to approve IBA registration.

5. Obtain the IBA registration certificate: The IBA will issue a registration certificate if the application is granted. The three-year expiration date applies to the registration certificate.

It is crucial to remember that the IBA can need further details or paperwork before deciding whether to approve an application. You can ask me to for a support & clarity if you have any questions regarding any step of the application process.

You can contact me to get a complete benefit, guidance and consulting support on IBA approval and process.

Please let me know if you have any comments.

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