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Thursday, December 11, 2014

RBI to review priority sector lending norms for foreign banks

The Reserve Bank of India (RBI) will soon be reviewing the priority sector lending norms for foreign banks; after which it will nudge them convert their Indian branches into wholly-owned subsidiaries, the Governor, Raghuram Rajan said here on Thursday.

Rajan was in the city to attend RBI board meeting.

According to him, the foreign banks have expressed (to the central bank) their concerns and the obligations they will have if they have to convert their branches into wholly-owned subsidiaries.

The primary concerns raised by these foreign banks have been on the priority sector lending and achieve the mandated norms.

“We are in the process of reviewing the priority sector norms. When that process is finished, after consultation with the Government, we will be able to communicate those norms. Once we do that, at that point we can nudge the foreign banks into adopting those structures,” he told reporters during a press conference.

Source : Thehindubusinessline


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