Change in Regulations on Foreign Ownership in Indian banks likely soon

The changes are not part of the Banking Laws (Amendment) Bill that has been tabled in the Lok Sabha on August 9 by MoS Finance, Pankaj Chaudhary. The government may propose further amendments to banking laws as part of a broader overhaul of the sector in addition to changes listed in the legislative agenda on August 9. The government has been closely engaged with the Reserve Bank of India to bring about further changes to foreign ownership in Indian banks for some time. Multiple sources aware of the development and involved in the process say work on this front was initiated back in January this year, and serious discussions are ongoing between the government and the central banks.