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India's Inter-Departmental Committee Reviews Foreign Bank Entry Proposals

The Inter-Departmental Committee, chaired by DFS Secretary M Nagaraju, met to evaluate RBI-referred proposals from foreign banks seeking to establish a presence in India, consulting key ministries on security and economic aspects. In a separate development, the Finance Ministry approved a Rs 200 crore loan for Uttarakhand under a capital investment scheme to reform its mining sector. Chief Minister Pushkar Singh Dhami stated the funds would promote transparency, technology, and sustainable development in mining operations. The assistance aims to make the sector more organized and employment-oriented, boosting the state's economy.

Key Points: India Reviews Foreign Bank Proposals, Approves Uttarakhand Mining Aid

  • Foreign bank proposals reviewed
  • Security & economic angles considered
  • Rs 200 crore mining loan approved
  • Reforms for sustainable development
2 min read

DFS Secretary chairs Inter-Departmental Committee meeting to consider foreign banks' proposals

DFS Secretary chairs committee on foreign bank branches in India. Separate Rs 200 crore mining reform loan approved for Uttarakhand under central scheme.

"assistance would give fresh momentum to transparency, technological advancement, and sustainable development - Uttarakhand CM Pushkar Singh Dhami"

New Delhi, January 2

The Secretary of the Department of Financial Services, M Nagaraju, chaired the Inter-Departmental Committee meeting on Friday to consider proposals received from the Reserve Bank of India regarding foreign banks seeking to open branches, representative offices, or subsidiaries in India.

It was attended by member ministries or departments, i.e., the Ministry of Home Affairs (MHA), the Ministry of External Affairs (MEA), the Department of Commerce (DoC) and the Reserve Bank of India (RBI), according to an official release by the Ministry of Finance.

During the meeting, after due deliberations, the Committee recommended the proposals placed before it.

IDC is a committee wherein the Department of Financial Services (DFS), as the nodal Department, evaluates proposals received from foreign and domestic banks. Before reaching a consensus, the committee consults the proposal with member ministries or departments, i.e. MHA, MEA & DoC, seeking their inputs in the matter from security, political and economic angles respectively, the release said.

Earlier, on Tuesday, the Ministry of Finance extended significant financial assistance to the state of Uttarakhand. For the financial year 2025-26, a special assistance of Rs 200 crore (loan) has been approved for Uttarakhand under the "Scheme for Special Assistance to States for Capital Investment (SASCI)" to support reforms in the mining sector, the Chief Minister's Office said in a press release.

This assistance has been provided to implement reforms related to minor minerals and initiatives linked to the State Mining Readiness Index. The funds have been released in accordance with the guidelines laid down by the Government of India, based on the proposal submitted by the Uttarakhand government and the recommendations of the Ministry of Mines.

Expressing gratitude to Prime Minister Narendra Modi and the Government of India for this support, Uttarakhand Chief Minister Pushkar Singh Dhami said that the assistance would give fresh momentum to transparency, technological advancement, and sustainable development in Uttarakhand's mining sector.

He added that the state government would utilise the funds to make the mining system more organised, environmentally sensitive, and employment-oriented, thereby strengthening the state's economy and creating new opportunities for local youth.

- ANI

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Reader Comments

P
Priyanka N
More foreign banks could mean better services and more competition, which is good for us customers. Hopefully, this leads to better digital banking features and maybe even lower fees? The process seems thorough though, which is reassuring.
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Aman W
While opening doors is good, I hope the focus remains on strengthening our own public sector banks. They serve the masses in rural and semi-urban areas where foreign banks may never go. The ₹200 cr for Uttarakhand's mining reform is a positive step for a specific sector.
S
Sarah B
The article jumps from foreign banks to mining sector funding for Uttarakhand. It's a bit disjointed. However, both show policy action. The mining assistance, if used well, can create local jobs and ensure environmental standards – that's the key.
K
Karthik V
Foreign banks setting up shop is a sign of confidence in the Indian economy. It will bring in FDI and create high-skilled jobs in the financial sector. The IDC process seems robust. Hope the recommendations are implemented swiftly without unnecessary red tape.
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Nisha Z
Transparency in mining sector reform is much needed! Glad Uttarakhand is getting funds for it. On foreign banks, as long as they follow our rules and contribute to the economy, it's welcome. But the benefits should trickle down to the common man, not just stay in metro cities.

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