Foreign Banks in India

Foreign banks have brought latest technology and latest banking practices in India. They have helped Indian Banking System made more competitive and efficient. Government has come up with a road map for expansion of foreign banks in India.

The road map has two phase. During the first phase between March 2005 and March 2009, foreign banks may establish a presence by way of setting up a wholly owned subsidiary (WOS) or conversion of existing branches into a WOS. The second phase will commence in October 2009 after a review of the experience gained after due consultation with all the Stake Holders in the Banking sector. The review would examine issues concerning extension of national treatment to WOS, dilution of Stake and permitting mergers / acquisitions of any private sector banks in India by a foreign bank.