India and Pakistan have agreed to allow two banks each from both the countries to set up branches across the border, Governor of the State Bank of Pakistan, Yaseen Anwar said today.
"We have held discussions with the Reserve Bank of India and both sides have agreed to issue a full banking licence to two banks of each country," Anwar told PTI on the sidelines of a conference organised by Institute of South Asian Studies.
"It will take few months to approve Indian banks' licences on receiving them," he said.
"We are ready to go tomorrow to India" to set up banking operations, Anwar said.
Discussions have been held with RBI Governor D Subbarao to issue banking licences, he said, adding that the process will help normalise trade relations between India and Pakistan.