Major reforms in banking sector on anvil, says RBI Guv

The Reserve Bank of India is likely to announce in the coming weeks guidelines for allowing entry of foreign banks in the country

GN Bureau | October 14, 2013



In a major fillip to the banking structure in the country, the Reserve Bank of India is contemplating allowing entry of foreign banks to set up branches or acquire domestic banks, governor Raghuram Rajan has said.

According to a report in The Times of India, Rajan made the announcement while addressing a gathering in Washington on Sunday. "That is going to be a big opening because one could even contemplate taking over Indian banks, small Indian banks and so on," Rajan said. However, he did not divulge any further details and said that the apex bank would announce the relevant guidelines in the coming weeks.

Rajan has assured that foreign banks setting up a wholly-owned subsidiaries structure would be treated at par with the domestic banks. However, this treatment would be subject to two specific conditions, he clarified.

"One (is) reciprocity— your country should allow the same to our own banks— and second you come through one route either you have a branch or you have a subsidiary; don't do both. That is primarily to simplify our regulatory function, but also to make it clean. But once you have a fully owned subsidiary, we would allow you a lot of freedom," he said.

Since taking over charge as the apex bank governor in September, Rajan has introduced a slew of measures so as to strengthen the banking structure which in turn would fuel the country’s economic growth.
 

Comments

 

Other News

2023-24 net direct tax collections exceed budget estimates by 7.40%

The provisional figures of direct tax collections for the financial year 2023-24 show that net collections are at Rs. 19.58 lakh crore, 17.70% more than Rs. 16.64 lakh crore in 2022-23. The Budget Estimates (BE) for Direct Tax revenue in the Union Budget for FY 2023-24 were fixed at Rs. 18.

‘World’s biggest festival of democracy’ begins

The much-awaited General Elections of 2024, billed as the world’s biggest festival of democracy, began on Friday with Phase 1 of polling in 102 Parliamentary Constituencies (the highest among all seven phases) in 21 States/ UTs and 92 Assembly Constituencies in the State Assembly Elections in Arunach

A sustainability warrior’s heartfelt stories of life’s fleeting moments

Fit In, Stand Out, Walk: Stories from a Pushed Away Hill By Shailini Sheth Amin Notion Press, Rs 399

What EU’s AI Act means for the world

The recent European Union (EU) policy on artificial intelligence (AI) will be a game-changer and likely to become the de-facto standard not only for the conduct of businesses but also for the way consumers think about AI tools. Governments across the globe have been grappling with the rapid rise of AI tool

Indian Railways celebrates 171 years of its pioneering journey

The Indian Railways is celebrating 171 glorious years of its existence. Going back in time, the first train in India (and Asia) ran between Mumbai and Thane on April 16, 1853. It was flagged off from Boribunder (where CSMT stands today). As the years passed, the Great Indian Peninsula Railway which ran the

Vasudhaiva Kutumbakam: How to connect businesses with people

7 Chakras of Management: Wisdom from Indic Scriptures By Ashutosh Garg Rupa Publications, 282 pages, Rs 595

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter