Presence of Foreign Banks in India

SIFMA and U.S.-India Business Council (USIBC) provide comments to the Reserve Bank of India (RBI) on the RBI’s Discussion Paper on the Presence of Foreign Banks in India.  The groups believe that given India’s role as an economic leader, it has become increasingly important for India to implement clear financial policies that promote deep investment, stability, and market integrity. Some of the policies proposed in the discussion paper have immense implications for global and Indian financial institutions, global banking oversight, financial markets, and ultimately Indian consumers. SIFMA and USIBC also believe additional industry and government-to-government consultation is required beyond the comment period deadline. The groups seek clarification on many issues, including on mandatory subsidiarization for new foreign bank entrants, the conditions and incentives for voluntary conversion of existing branches, priority sector lending requirements, and a lack of national treatment even with full compliance to the proposed rules.