RBI opens doors to M&As for foreign banks in India

Governor Rajan has provided an option to convert or operate through branches for those present before 2010, but has provided incentives to convert with a prescribed capital of Rs 500 crore."Wholly-owned subsidiaries may be permitted, subject to regulatory approvals and such conditions as may be prescribed, to enter into M&A transactions with any private sector bank in India, subject to the overall foreign investment limit of 74%," said the proposed framework.The principles of reciprocity and single mode of presence will determine the need for a foreign bank to locally incorporate, but many of the parameters are not provided in black and white...Read more >> Click here