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.
Neha Lakra, 20, doesn’t forget to practise hockey, at least for four hours, every day. Whether at home or at the Panposh sports hostel in Rourkela where she is training under the guidance of coaches, her routine doesn’t change. “I can’t sleep unless I have worked on the ground,&rdqu
Somewhere Among the Stars: Reflections of a Mystic By Adi Varuni Kali/BluOne Ink, 282 pages, Rs 395 Decades ago, when an unknown N
The 13th National Voters’ Day was celebrated across the country Wednesday with president Droupadi Murmu gracing the national event held here. Kiren Rijiju, union minister for law & justice, was the guest of honour. The chief election commissioner, Rajiv Kumar, election commissioners Anup Chandra
The Indian Navy commissioned its fifth stealth Scorpene class Submarine INS Vagir on Monday at the Naval Dockyard, Mumbai in the presence of Admiral R Hari Kumar, Chief of the Naval Staff. Vagir was launched on November 12, 2020, under Project 75 (P75) and post completion of sea trials it w
Ahead of the Mumbai civic polls, former Maharashtra chief minister Uddhav Thackeray on Monday announced an alliance with Prakash Ambedkar`s Vanchit Bahujan Aghadi (VBA). Addressing a joint press conference, Thackeray said their grandfathers, Keshav Thackeray and Dr. B.R. Ambedkar, were conte
Ela R. Bhatt, the founder of SEWA, once said, “There is ample proof to demonstrate that women can and do build strong and vital organizations around issues that relate to them, and find viable solutions out of their own experiences.” Women Leadership Schools (WLSs) promoted by Se