Question : OPENING OF FOREIGN BANKS



(a) whether the Government is proposing to make change in the policy of opening of foreign banks;

(b) if so, the details thereof; and

(c) if not, the reasons therefor ?

Answer given by the minister


MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM)

(a): No, Sir.

(b): Does not arise.

(c): As per the present policy, Reserve Bank of India (RBI) examines proposals received from foreign banks for setting up offices in India. An Inter Departmental Committee of Government considers these proposals for clearance before RBI grants licences. This policy seems appropriate and is functioning well.