Proposals of foreign banks desirous of opening branches/ representative offices/subsidiaries in India considered in the meeting

 

The Secretary of Department of Financial Services, Shri M Nagaraju chaired the Inter-Departmental Committee (IDC)meeting today. It was attended by member ministries/departments i.e. Ministry of Home Affairs (MHA), Ministry of External Affairs (MEA), Department of Commerce (DoC) and the Reserve Bank of India (RBI). The meeting was convened to consider proposals received from RBI in respect of foreign banks desirous of opening their branches/ representative offices/subsidiaries in India.

During the meeting, after due deliberations, the Committee recommended the proposals placed before it.

IDC is a committee wherein the Department of Financial Services (DFS), as the nodal Department, evaluates proposals received from foreign and domestic banks. Before reaching a consensus, the committee consults the proposal with member ministries/departments i.e. MHA, MEA & DoC seeking their inputs in the matter from security, political and economic angles respectively.

Foreign banks opening branches in India: IDC chaired by DFS reviewed proposals and recommended approval. The Inter-Departmental Committee, chaired by the Department of Financial Services, evaluated proposals from foreign banks to open branches, representative offices, or subsidiaries and, after consulting member ministries on security, political and economic considerations, issued recommendations; the IDC functions as the nodal consultative body in the regulatory review of foreign bank entry.