A new deal for foreign banks: Even while the issue of granting - TopicsExpress

A new deal for foreign banks: Even while the issue of granting bank licences to a few private banks is gaining traction, the Reserve Bank of India (RBI) has released important guidelines for foreign banks to participate in the Indian financial sector in a bigger way than what has been possible so far.The two developments have one common objective — they are meant to deepen the financial sector. If all goes well, a few new private sector banks will advent in early 2014. At the moment, there are 26 applicants, who have met the stiff eligibility criteria, and are being vetted by an independent committee of experts headed by former RBI Governor Bimal Jalan.Awarding licences to corporates has been the most contentious issue in the new licensing policy, but once the decision was made, a few of the India’s biggest companies have put in their applications.

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