For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

RBI may ask new foreign banks to form subsidiaries in India

By Religare
|
RBI may ask new foreign banks to form subsidiaries in India
Reserve Bank of India (RBI) may ask the new foreign banks that have just entered India to adopt subsidiary model in the country instead of adopting a branch model, hoping to strike a level-playing field between domestic and foreign banks.
 

RBI governor D Subbarao said that the central bank has already resolved major taxation issues such as exception from stamp duty and capital gains tax on conversion from a branch to a subsidiary.

He said that however few other issues are yet to be resolved which will take some more time, after which RBI will issue final guidelines. Subbarao had planned mandatory incorporation of subsidiary foreign banks following the global financial crisis of 2008.

While all the foreign banks have so far chosen to operate in India in a branch mode, Subbarao plans to make it mandatory for new and existing foreign banks to work as a subsidiary in India.

Read more about: rbi
Company Search
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more