The Inter-Departmental Committee (IDC), chaired by the Secretary, Department of Financial Services (DFS), Shri M. Nagaraju, held a meeting today to consider proposals submitted by the Reserve Bank of India (RBI) concerning foreign banks seeking to open branches, representative offices, or subsidiaries in India.
The meeting was attended by representatives from key member ministries and departments, including the Ministry of Home Affairs (MHA), the Ministry of External Affairs (MEA), the Department of Commerce (DoC), and the Reserve Bank of India. The proposals under consideration relate to foreign banks that have expressed interest in expanding or establishing their operations in the Indian financial system.
After detailed deliberations, the Committee recommended the proposals placed before it.
The IDC functions as a consultative body under the Department of Financial Services, which acts as the nodal department for evaluating proposals from both foreign and domestic banks. As part of its review process, the Committee seeks inputs from member ministries and departments before arriving at a consensus. These consultations are undertaken to assess proposals from multiple perspectives, including security considerations (MHA), political and diplomatic aspects (MEA), and economic and trade implications (DoC).
The recommendations of the IDC form an important step in the decision-making process for allowing foreign banks to operate in India, ensuring that such proposals are examined in a coordinated and comprehensive manner.
