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Essay text:
Add to that
the risks posed by larger
operations by foreign banks and
there is a case for revisiting the
2005 road map of the Reserve
Bank of India which indicated
that these banks may be able to
expand their presence after 2009.
In 2005, the Reserve Bank of India
(RBI) announced a road map for the
presence of foreign banks in India. The
policy stated that foreign bank expansion
in India would proceed in two phases. In
Phase I, the RBI promised to go beyond the
existing commitment of 12 new branches
for foreign banks in a year. This was not
giving away a great deal in light of the
pace of expansion of branches of the new
private banks...
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