Proposals Relating to Licensing of New Banks in the Private Sector

SIFMA, the Asia Securities Industry & Financial Markets Association (ASIFMA), the Association for Financial Markets in Europe (AFME), and the EU Asia Financial Services Round Table (EAFSR) provide comments to the Reserve Bank of India expressing concern about the foreign shareholding provisions for new banks included in the revised Draft Guidelines for Licensing of New Banks in the Private Sector.  Specifically, the groups are very much concerned about the revision in the draft guidelines which would have new foreign investment in India’s banking sector limited to 49 percent ownership, as opposed to the current practice of 74 percent.