The Reserve Bank of India (RBI) and the finance ministry have not resolved the issue of the status of the seven private sector banks categorized as foreign-owned under the new Foreign Direct Investment (FDI) norms, said Reserve Bank of India (RBI) Governor D Subbarao.
At a press conference in Mumbai on Tuesday, Subbarao said “We are in correspondence with the Government of India on this matter. The issue has not been resolved yet.”
Earlier in the year, RBI had pointed out to the finance ministry that the new FDI guidelines will create a new category of “foreign-owned and Indian-controlled banks”, which could pose regulatory challenges.
RBI, in its observations on the FDI policy, had also stated that the new FDI norms could lead to “de-facto” capital account convertibility, which is restricted at the moment.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app