Newsletter November 2013: India opens to foreign bank subsidiaries

MUMBAI – The Reserve Bank of India (RBI) released a framework for the setting up of wholly-owned subsidiaries (WOS) by foreign banks in India on 6 November. According to the RBI, subsidiaries will be “given near national treatment which will enable them to open branches anywhere in the country at par with Indian banks (except in certain sensitive areas where the Reserve Bank’s prior approval would be required). They would also be able to participate fully in the development of the Indian financial sector.”