18 Nov 2013
Raghuram Rajan urges `dramatic remaking` of India`s banking system
India’s central bank governor Raghuram Rajan is planning a “dramatic remaking” of banking in Asia’s third-largest economy, with an expanded role for foreign groups, more licences for domestic private sector institutions and a push to shake-up state-backed banks in advance of a new era of robust competition.
The recently appointed Reserve Bank of India head this month published new rules liberalising the treatment of foreign banks and is planning to issue the country’s first new banking licences in a decade next year, part of far-reaching reforms for financial services sector in India.
“I see over the next few years a dramatic remaking of the banking landscape,” he told the Financial Times. “Both from the . . . new banks which are going to come on board, and the foreign banks which are going to be allowed to expand more freely. It will be a multiplier in terms of competition.”
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