India: Reforms in the banking sector

The Reserve Bank of India (RBI) has announced a program of reforms in India concerning the banking sector, which will be evaluated in the coming months.

Among the main ones is certainly the issuance of licenses for new market entrants, which will be discussed by July 2010.

Another important proposal concerns the introduction of holding companies to insulate banking institutions from risks related to the activities of their subsidiaries. According to a Central Bank of India statement, to date there is a lack of provision for a holding company structure for financial conglomerates, thus exposing investors, depositors and parent companies to the risks of subsidiaries. Currently, several banks such as State Bank of India, ICICI Bank, and Kotak Mahindra Bank operate as financial conglomerates, with subsidiaries active in insurance and investment funds.

The RBI is also considering easing regulations on the entry of foreign players into the Indian market. The regulator is preparing a paper on the mode of presence in the industry (through a branch office or subsidiary), which will be submitted by September 2010.

What other reforms in India? Follow Octagona to stay updated on the latest issues regarding reforms in India. With three offices in Pune, Bangalore and New Delhi, Octagona can say it has direct experience on the ground for more than 20 years, helping Italian companies that want to grow abroad to explore new opportunities and new markets, such as India's. That's why we report daily updates on the latest news in India, the latest news and everything related to foreign trade between India and Italy. Are you interested in learning more about the content of this article? Then contact us and we will study with you the best solution for your needs.

Source: Indian News

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