Rabo Bank and Goldman Sachs will have to wait a bit longer to start their banking operations in India as the Reserve Bank of India is expected to issue new banking licences only after it comes out with a discussion paper on the issue in September, reports CNBC-TV18 quoting sources. The RBI will review presence of foreign banks to operate in India as a branch or a subsidiary in the said month. The Reserve Bank is in favour of the subsidiarisation model as it feels it will give more regulatory control over foreign banks. As far as new licences are concerned, sources at the RBI said that they welcome banks like Rabo Bank to start operations in India. The Netherlands based bank is largely focussed on agriculture based activities, which is one of the pet projects of the RBI.
Source - http://www.moneycontrol.com/news/cnbc-tv18-comments/rbi-to-issue-new-banking-licences-post-sept_467225.html
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