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RBI Guidelines for Foreign Banks

Banking space is going to see lot of action in forthcoming years as today Reserve Bank of India permitted wholly-owned subsidiary (WOS) of foreign banks to acquire domestic private sector banks as well as set up branches anywhere in the country.

It also allowed foreign bank subsidiary to list on local stock exchanges. However, foreign bank subsidiary will not be allowed to hold more than 74 per cent, the sectoral cap for overall foreign investment, in the private banks they may acquire.

RBI is doing a good job and they should make the rules of the game clear as amending banking rules it time and again like TRAI sends wrong signals to the investing fraternity. Check the latest banking updates here.

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