Banking and monetary regulator Reserve Bank of India is planning to start inspection of the offshore operations of Indian lenders. The prime lenders to be focused upon will be State Bank of India, ICICI Bank and Bank of Baroda.
Lenders who have almost one fifth of their total assets plying overseas will be mainly under scanner, informed sources familiar to the development.
"RBI conveyed the message that banks should be prepared for an RBI inspection henceforth for foreign offices,'' said a source. "The point made by the regulator was that as the size of overseas operations is rising, it needs to be directly monitored by the central bank officials."
So far the central bank had been working as per data revealed by respective banks about their business size and operations abroad.
The inspection process of the apex bank would begin in the next fiscal and for that RBI will follow the lines of other regulators like Hong Kong Monetary Authority and UK's Financial Services Authority.