The finance ministry and the Reserve Bank of India (RBI) are working on new guidelines that will ease mergers and acquisitions (M&As) among banks, which would pave the way for the creation of stronger entities through consolidation and for foreign banks to strengthen their local presence. "We are in discussions with the RBI. The idea is to make the norms easier and remove the irritants, which lead to delay in such transactions after regulatory approvals have been obtained," a finance ministry official said. RBI governor Raghuram Rajan had, last month in Washington, said that the banking regulator was planning a significant change in the rules to allow foreign banks to have a much bigger presence in India than they currently have and that they may even be allowed to acquire domestic lenders.
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