(a) whether the Government propose to accord permission for opening of branches of
foreign banks in small towns of the country to facilitate loan to Small Scale Industries;
(b) if so, the details thereof; and
(c) if not, the reasons therefor?
(a) whether the Government propose to accord permission for opening of branches of
foreign banks in small towns of the country to facilitate loan to Small Scale Industries;
(b) if so, the details thereof; and
(c) if not, the reasons therefor?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM)
(a) & (b): For further enhancing the efficiency and stability of the banking sector in India, the
Reserve Bank of India has issued Road map for presence of foreign banks in India on
28.02.2005 which also provides for more liberal policy for opening of branches in
underbanked areas. These guidelines are available on the RBI website www.rbi.org.in .
Foreign Banks in India are required to provide 32% of their net bank credit (NBC) to
priority sector including small scale industries.
(c) Does not arise.