4th Feb 2008
Mumbai: The Reserve Bank of India (RBI) and the Monetary Authority of Singapore (MAS) have finally agreed to open up the financial sector of their respective countries.
According to people familiar with the development, both the regulators have already reached an understanding and a formal announcement is expected soon.
According to the arrangement, MAS will offer the qualifying full bank (QFB) status to State Bank of India (SBI). This will enable India’s largest commercial bank to raise retail deposits and open 15 centres in Singapore, including automated teller machines and point of sales, but no brick and mortar branches. Until now, SBI has only one branch in Singapore but no access to retail deposits.
RBI, in turn, will issue a licence to United Overseas Bank Ltd (UOB) of Singapore to set up shop in India. UOB will be the second bank from Singapore after DBS Bank Ltd to have a presence in India. DBS, which currently operates two branches, will be given licence to set up eight more branches.
http://www.livemint.com/2008/02/04230053/India-play-for-Singapore-bank.html
