Currently, deposits of up to Rs 5 lakh are covered under the deposit-insurance scheme.
Foreign banks were ahead in terms of technology, but that is no longer the case as Indian private banks steal the innovation march.
The growth was primarily driven by domestic investments, which accounted for 60 per cent of the total inflows during the first quarter of the financial year.
Foreign banks had 317 branches in 2015-16; it has reduced to 286. In the same period, employee strength came down from 26,642 to 24,766.
Citi Bank on Wednesday joined the list of foreign banks that have exited the retail banking business in India as the US-based banking giant announced selling its consumer banking portfolio to Axis Bank for an estimated Rs 12,325 crore. Global banking majors such as ANZ Grindlays, RBS, Commonwealth Bank of Australia have scaled down their operations in India. In a mega-deal announcement on Wednesday, Axis Bank and Citibank said their boards have approved acquisition of Citibank's consumer businesses in India by Axis Bank.
'Within India, people want high-quality, personalised banking services, and the demand for such services has exploded.'
The Reserve Bank on Monday said asset quality of banks improved further and their gross non-performing assets (GNPA) or bad loans ratio declined to a 12-year low of 2.6 per cent in September 2024 on the back of falling slippages and steady credit demand. The RBI also flagged concern over a sharp rise in write-offs, especially among private sector banks (PVBs), which could be partly masking worsening asset quality in unsecured lending segment and dilution in underwriting standards.
The regulator said if the variable pay is up to 200 per cent of the fixed pay, at least 50 per cent of it should be in non-cash, and if the variable pay is above 200 per cent, 67 per cent of it should be paid via non-cash instruments.
Among the foreign banks with a major presence in India - as adjudged on the basis of their employee strength - only Standard Chartered Bank bucked the trend.
The Reserve Bank of India scanner on banks with exposures to exotic derivatives has now turned to several high-profile foreign banks. RBI has called for data from most of the foreign banks active in structured product markets since most of the exotic products have originated from these foreign banks.
Local banks no match for foreign peers in global reach and better services.
Finance Ministry issues strict instructions on foreign bank accounts.
"It has been decided that for all foreign banks operating in India, the CEO would be responsible for effective oversight of regulatory and statutory compliance as also the audit process and the compliance thereof in respect of all operations in India," the RBI said in a notification.
Compared to other emerging markets, accelerated growth in the domestic economy provided greater business opportunities to foreign banks in India, resulting in higher profitability.
After delaying liberalisation for foreign banks by over a year due to global financial meltdown, the Reserve Bank on Tuesday decided to review its position by September this year in the wake of improving conditions worldwide.
Deutsche Bank could be the next to trim its retail operations.
The Reserve Bank on Wednesday permitted wholly-owned subsidiary (WOS) of foreign banks to acquire domestic private sector banks as well as set up branches anywhere in the country.
Withdrawals from basic savings bank deposit accounts are capped at four a month, including withdrawals via ATMs.
Overseas markets are already hit by an acute dollar crunch, which is why major central banks, the US Federal Reserve, the European Central Bank and the Bank of England, had to infuse funds into the market. These lines of credit are over and above the stand-by credit, which is usually maintained by foreign banks with the Indian banks.
Foreign banks operating in India want the Reserve Bank of India to prepare a vision document on policy changes they can expect after March 2009.
Foreign Banks operating in India have outpaced domestic banks, both private and PSUs, in reducing the level of non-performing assets, a study has revealed.
With one of its members, Pradip Burman, being named as an account holder in a foreign bank in the black money issue, Dabur India promoter family, Burmans on Monday said the account complied with all legal requirements.
Currently, foreign lenders are present in India only through branches or representative offices.
Foreign banks operating in India have no branches in rural areas, the Lok Sabha was informed on Friday. However, private sector banks were operating in rural areas through 1109 offices, Finance Minister P Chidambaram said.
The new regulations leave registration capital requirements for wholly foreign-owned banks unchanged
The brothers say that the accounts were opened when they were NRIs and were legally allowed to do so.
If the account in a foreign bank has income undisclosed to income tax authorities, or has funds from illegal sources, the account can be declared illegal, under the Fema.
Was told that account will be closed if it did not stop providing insurance cover to ships ferrying oil from Iran.
The RBI is working to nudge large foreign banks with 30 or more branches in India to get incorporated locally.
Foreign banks say they have been caught in a "conflict" situation with respect to the manner in which the Reserve Bank of India (RBI) conducts inspections at their branches.
Bankers have read the Reserve Bank of India's (RBI) comments on foreign banks' market share in India as an indication that the promised review of policies on the presence of overseas banks in 2009 is unlikely to yield any greater leeway within which they can operate.
© 2026 Rediff.com - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances