Foreign banks are most likely to get entry in the country but on the condition that they abide by the motto of bringing total financial inclusion.
According to top officials of the finance ministry, RBI is ready to respond to reciprocal gestures by UK, Europe and US.
Currently, 12 banks of foreign entity are allowed to open branches in India in one year which may be raised to 20.
This decision came after UK showed interest in letting Indian banks operate there.
Indian banks have around 125 branches abroad and own about 21 subsidiaries. The largest lender of the country, State Bank of India gets 12% of its revenues from abroad.
While Bank of Baroda wants to establish 12 branches overseas this fiscal, Allahabad Bank and IDBI Bank want to set up operations in Dubai, Beijing and Singapore.
Recently, finance minister Pranab Mukherjee told bankers, "The global banking landscape is changing fast. Indian banks should use this opportunity to carve out a place for themselves at the global platform."