New rules may allow foreigners to take over of Indian banks

The Reserve Bank of India (RBI) will soon come out with new rules for the entry of foreign banks that may even allow them to take over Indian banks, RBI Governor Raghuram Rajan has said.

"That is going to be a big big opening because one could even contemplate taking over Indian banks, small Indian banks and so on," he said at an event of the Institute of International Finance here Saturday.

"We're coming out with details on that in the next couple of weeks."

"By setting up wholly owned subsidiaries, foreign banks will get more opportunities to expand in India," Rajan said. "We will allow you a lot of freedom on branching."

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