The RBI has put on hold its in-principle approval to UBS bank pending investigation, RBI spokesperson Alpana Killawala told PTI.
UBS AG has called an extraordinary general meeting on February 27 to discuss, among other things, increasing its capital base. The RBI move may
also be raised in the meeting.
Official sources said the Enforcement Directorate is investigating alleged transfer of billions of dollars through the UBS bank between Pune-based stud farm owner Hasan Ali and a Saudi Arabia-based arms dealer.
UBS, which does not have any branch in India so far, had applied to the RBI for opening a branch in the country.
The RBI had earlier given in-principle approval, which has been put on hold till the completion of investigation by the Enforcement Directorate, the sources said. UBS officials could not be contacted.
