Bigger play for foreign banks easier said than done?

Could Raghuram Rajan’s announcement on letting foreign banksenter India in a bigger way, be easier said than done? At a time when there is literally no good news coming out of India, and the government is in no position to undertake big reforms in a pre-election year, the RBI seems to be initiating these bold moves in a bid to attract more capital into the country.

Rajan spoke about the need to allow for bigger participation of foreign banks during his inaugural speech as well, and he reiterated this objective in Washington yesterday saying the policy framework for entry of foreign banks in a “big way” would be unveiled in the next few weeks.  “A lot is already on the table starting with the passage of the banking laws amendment bill enhancing voting rights cap in banks from 10-26%. Harmonizing ownership guidelines will be a pre-requisite to consolidation.

Read more >> Click herea