(a) whether the Government has given permission to foreign banks to open their branches in unbanked/rural areas in the country;
(b) if so, the details thereof;
(c) whether the Government has formulated any policy to keep a check on these banks; and
(d) if so, the details thereof along with the other steps taken/being taken by the Government in this regard?
The Minister of State in the Ministry of Finance
(a) & (b): Reserve Bank of India (RBI) has given permission to foreign banks for opening branches in rural areas. The details of rural branches of foreign banks in India are as under:
Sl. No. Name of the foreign bank No of rural branches
1 Australia and New Zealand Banking Group Ltd. 1
2 DBS Bank Ltd. 2
3 Deutsche Bank AG 1
4 Shinhan Bank 1
5 Standard Chartered Bank PLC 1
6 The Bank of Tokyo Mitshubishi UFJ Ltd. 1
(c) & (d): RBI monitors the operations of all foreign banks in India including their operations in rural areas. Currently there are no regulatory direction from RBI on opening branches in unbanked / rural areas for foreign banks operating in India. However, RBI through moral suasion encourages foreign banks to open branches in unbanked / rural areas. RBI’s general directions on operations of branches in rural/unbanked areas are also applicable to the branches of foreign banks.
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