Wall Street investment banking giants — Goldman Sachs, Morgan Stanley and JP Morgan — could receive the Reserve Bank of India’s nod to commence full-fledged banking operations in India.
These banks would join Dutch major Rabo Bank, who received the RBI’s approval to set up commercial banking operations in India last week.
The RBI has set up a panel to screen applications from foreign banks before granting licences.
“As and when the committee finds the applications of these banking entities acceptable and suitable and in compliance with the guidelines, the RBI would grant licences,” an official source told Hindustan Times on the condition of anonymity. Middle Eastern banking giant Doha Bank has also applied for a licence with the RBI, although it may not begin commercial operations immediately in India.
During the first phase (2005-09), foreign banks willing to set up offices in India for the first time could either choose to operate through a branch or set up a wholly-owned subsidiary (WOS). Foreign banks already in India were allowed to convert their existing branches to a WOS, following the one-mode presence criterion. No foreign bank, however, applied to do the same in the first phase.
When the revision of presence of foreign banks was due in April 2009, the global financial markets were in turmoil, deferring the entry of new foreign banks into India.
{{/usCountry}}When the revision of presence of foreign banks was due in April 2009, the global financial markets were in turmoil, deferring the entry of new foreign banks into India.
{{/usCountry}}