New Delhi, Jan 2 An Inter-Departmental Committee, headed by the Union Secretary, Financial Services, M. Nagaraju, met here on Friday to consider the proposals of foreign banks wanting to set up branches in India.
The meeting was attended by officials of the member ministries, including Home Affairs and External Affairs, as well as the Department of Commerce and the Reserve Bank of India (RBI).
The meeting was convened to consider proposals received from the RBI in respect of foreign banks keen on opening their branches, representative offices and subsidiaries in India, according to an official statement issued after the meeting.
During the meeting, after due deliberations, the Committee recommended the proposals placed before it, the statement said,
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 the Ministry of Home Affairs, the Ministry of External Affairs, and the Department of Commerce, seeking their inputs in the matter from security, political, and economic angles, respectively.
Foreign banks in India, regulated by the RBI, include major global players like HSBC, Standard Chartered, Citibank, DBS, Deutsche Bank, and Bank of America, focusing on corporate clients, NRIs, and trade finance with strong digital platforms, offering global banking access and specialised services. They operate through branches or wholly-owned subsidiaries, significantly impacting India's financial sector despite their smaller asset share.
Standard Chartered Bank (UK), known for its extensive network of around 100 branches and strong corporate, commercial, and private banking services, is the largest foreign bank in terms of the number of branches in India. Citibank (USA) is a major player in institutional and corporate banking, and while having sold its retail/credit card business to Axis Bank, it remains a leading foreign bank in India.
HSBC (UK) also has a strong presence, offering a wide range of services, including retail, NRI, and investment banking, with roots in India dating back to 1853, while DBS Bank (Singapore) is a prominent digital bank in Asia with a growing presence in India, focusing on corporate and digital banking.
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