Question

3. How do Indian government regulations affect the ability of global banks to offer services there? (Consult the latest India report on the U.S. Trade Representative site at www.ustr.gov.)

Answer 1

Here is the answer for your question :-

Indian government regulations affecting the ability of global banks to offer their services.:-

Due to the Indian government regulations,

• There is a increase in working population
• There is a growth in disposable income which raised the demand for banking services and banking related services.
• These regulations led to the growth of rural banking .
• The mobile banking, internet banking and other extension services improves the operational efficiency.

These regulations provide healthy environment for the global banks which leads to high interest margin rates.

Towards the global banks, the Reserve Bank of India(RBI) is having credible monetary policy which benefits the global banks .

The Indian banking system consist of 46 foreign banks.

In the financial year 2020, foreign banks consist of 15.83% in the overall Indian banking sector .

In the year 2018, The U.S. goods and services trade with India was 142.6 billion $

India is the 9th largest goods trading partner with 87.9 billion $ .in total two way goods in the year 2018.

Trading of services with India in the year 2018 was 54.8billion $ among this 25.2 billion $ were exports..

29.6 billion$ were imports.

The trade deficite was 4.4 billion $ .

The sevices which were exported to India were computer soft ware, Audio and video related products.

U.S. imported services from India were in computer and information services, reserch and development and Tele comunications .

The RBI says the foreign banks should consists atleast 26% of paid up capital should be held by the residence except in case of wholly owned subsidiary of a foreign bank .

The reserve bank of India governer shakti kantha das says that financial services provided by banks are a small part of global buisiness .

The foreign banks are having bright oppurtunities in India because of huge financial market and huge customer base.

The educated working people, rich, elite, upper middle class people are mostly interested to gain the services of global banks.

Majority of the Indian people who work and do business are willing to experiance the services of global banks.

Based on the interest of the people the RBI is providing licenses to the global banks .

The foreign direct investment (FDI) in global banks is 74% .

The top global banks in India are:-

• standard charted bank
• Citi bank
• HSBC bank
• Royal bank of scotland
• Deutsche Bank
• DVS bank
• Bank of America
• Barclays Bank
• Bank of Bahrain and kuwait
• Doha bank

therefore , global banks have huge oppurtunities to utilise large customer base inorder to offer their services .

Indian people get attracted towards the services offered by the global banks , so there is a great opportunity for the foreign banks to offer their services.

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