Presence of foreign banks in India

[swapnil tambe]

Hello Friends,

RBI recently issue Discussion Paper on Presence of foreign banks in India...

There are currently 34 foreign banks operating in India as branches

Branches are not separate legal entities whereas subsidiaries are locally incorporated separate legal entities so there is debate among the policy makers whether to allow them to set up the branches or encouraging subsidiary. (Standard charted Bank is classical example of subsidiary of foreign bank  who also listed  recently on Indian stock exchange ) 

Some of the factors that will be taken into account while considering the application for setting up their presence in India are given below:

 

• Economic and political relations between India and the country of  incorporation of the foreign bank
• Financial soundness of the foreign bank
• Rating of the foreign bank by international rating agencies
• International presence of the foreign bank

·    Pls share your idea or comment whether to allow foreign banks in setting up their branches in India.

      Pls go through with attachment for detail information.

      Take care......       

Thanks & Regards,
Swapnil Tambe.
.