India’s central bank governor, Raghuram Rajan, has promised to carry out a “dramatic remaking” of the country’s banking sector as he seeks to introduce a new era of competition in Asia’s third-largest economy.
The recently-appointed head of the Reserve Bank of India said there would be an expanded role for foreign banks, more licences for domestic companies and a push to shake-up the state-backed lenders.
“I see over the next few years a dramatic remaking of the banking landscape,” he said in an interview with the Financial Times. “Both from the . . . new banks which are going to come on board and the foreign banks which are going to be allowed to expand more freely. It will be a multiplier in terms of competition.”
Earlier this month Mr Rajan published new rules liberalizing the treatment of foreign banks alongside plans to issue the country’s first new banking licences in a decade next year, as part of far-reaching reforms of Indian financial services.
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