World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

Additional questions

Mexico 1:

In accordance with the provisions of Paragraph 70 on Commercial Banks, "and foreign banks require a licence from the RBI to undertake banking operations in India. An authorization is required for the opening of new branches by banks and for changes in the location of existing branches, in accordance with the Branch Authorization Policy. Since 1 December 2009 Indian banks no longer require a licence from the RBI to open a branch in areas with a population below 50,000, subject to reporting."

Qn. Mexico wants to know if the same rule applies to foreign banks (and they too could open such branches in less populous areas).

Reply: The opening of branches by foreign banks, existing and new, in India is subject to a limit of 12 branches in a year, as per India's commitments to WTO. Therefore, the general permission granted to domestic scheduled commercial banks is not applicable to foreign banks.

TRADE POLICIES BY SECTOR / 3) Services / iv) Transportation a) Shipping

Mexico 2:

According to Paragraph 138 of Shipping, says that "foreign vessels must obtain from the Directorate General of Shipping a license for a particular voyage or a period (license for a specified period) for coastal trade. This license is subject to the granting of a certificate of no objection from the Indian National Shipowners' Association."

Qn. Mexico requests further explanation regarding the criteria to be met by owners of foreign flag vessels to obtain this certificate, and to know if the license and the certificate are the only distinct requirements that are required in respect of nationals. (Alt: Are the same requirements to be met by Indian nationals as well).

Reply: The Director General of Shipping has been empowered to issue licenses for Indian ships as well as for foreign ships. A general license is issued under section 406 of the Merchant Shipping Act, 1958 for Indian vessels and vessels chartered by a citizen of India or a company, or a co operative society. Foreign flag vessels are granted a specified period license (SPL) under Section 406/407 ibid in the coastal trade of India subject to no objection certificate issued by the Indian National Shipowners' Association (INSA). These licenses are granted under these sections and they shall be in such form and shall be valid for such period as prescribed and further shall be subject to such conditions as specified by the Director General of Shipping, as per his guidelines issued vide SD Circular Nos. 2/2002 and 2/2007 as amended from time to time on the subject.