FOREIGN BANKS TO CONVERT AS SUBSIDIARIES

The RBI would like 'systemically important' foreign banks to consolidate their branches in India into 'wholly-owned' subsidiaries, which would be easier to monitor and control. Foreign bank branches would be considered to be systemically important once their assets (including off-
balance sheet items) become 0.25 per cent of the total assets of all scheduled commercial banks in India.

Fast Facts

• 34 foreign banks (from 24 countries) operate in India. They have 315 branches.
• Additionally, 45 foreign banks operate in India through representative offices. 
• Foreign banks have a 7.2% share in the total assets of  the banking sector.