It is mentioned in the Secretariat report that the RBI formulated a Roadmap for Presence of Foreign Banks in India and the Guidelines on Ownership and Governance in Private Banks in 2005. In addition, a Discussion Paper on the former was released in January 2011 to seek feedback from all stakeholders and the general public with respect to the form of foreign bank presence in India. We would be grateful for India's advice on the latest progress on the consultation and whether the guidelines, once finalized, would be introduced on a mandatory basis.
Reply: The Discussion Paper on presence of Foreign Banks in India was released by RBI on 21 January 2011 inviting suggestions/comments from all stakeholders. The responses received from the stake holders would be taken into account while finalising the guidelines. At present, RBI is in the process of analysing the various suggestions/comments received from the stakeholders.
Since the guidelines are yet to be finalised, it would be premature to comment on the outcome.
