Wholly Owned Subsidiaries (WOS) of Standard Chartered Bank, Hong Kong and Shanghai Banking Corp. LTD, Citibank NA and various other foreign national financial lenders may be on the pipe line in India. If this move happens, the Reserve Bank of India would consider these banks will also be considered just like "near national banks" since they would be opening more branches in the third largest economy of Asia.
On Wednesday, there were new norms that were released for Non Indian Banks. The first time the discussion paper in regards to this subject was officially announced three years back, There are 334 branches of 43 non Indian banks, which are opened across various cities in India. Out of the overall network of the banking system, this would be half of a percentage point lesser.
40% of the funds of Foreign Banks, just like the local banks would be given to the important sector which also includes funding given to home loans, small enterprises, farmers etc.