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The Reserve Bank of India has given the green light to Swiss banking entity UBS to open a commercial banking branch in India after the bank fulfilled information disclosure conditions.
On the Go
The approval given to UBS earlier was kept on hold till it completed certain transactions. Now that the bank has completed them, it can start a branch, RBI deputy governor Leeladhar told reporters on the sidelines of a function organised by the Union Bank of India.
Banking sources said the banking sector regulator had put on hold UBS' branch license approval in India following the Swiss bank's reluctance to provide details to Indian authorities of money transfers across Switzerland, New York, the British Virgin Islands and Pune.
The Enforcement Directorate was probing the alleged transfer of funds between Pune-based stud farm owner Hasan Ali and a Saudi Arabian arms dealer through the bank.
Dominik Von Arx, the UBS spokesperson in Zurich told Business Standard last week that India is one of the very important markets for UBS as the difficulties (financial troubles arising from the US sub-prime crisis) faced by the bank will not impact the country.
RBI is also in final discussions for allowing the Singapore-based DBS Bank to further expand its branch network in India, Leeladhar said.
The Singaporean bank's proposal for setting up more branches is pending with the Reserve Bank of India following the Monetary Authority of Singapore's delay in granting full banking licence to State Bank of India and ICICI Bank. DBS has two branches in India, one in Delhi and another in Mumbai.
