RBI likely to issue final norms on foreign banks in few months

MUMBAI (Reuters) - The Reserve Bank of India expects to resolve within the next few months pending legal issues about whether to mandate that foreign banks incorporate in India, Governor Duvvuri Subbarao said on Wednesday.

Final guidelines will be issued once that has been resolved, Subbarao said at a banking conference in Mumbai.

At present, all foreign banks are operating in India by registering their branches, but without establishing subsidiaries.

Subbarao also pointed out the need for regulatory oversight on non-banking finance companies, and said eventually only regulated banks should be allowed to take deposits. (Reporting by Suvashree Dey Choudhury; Writing by Shamik Paul; Editing by Rafael Nam)