Govt panel clears proposals for foreign banks to open branches in India

An Inter-Departmental Committee recommended RBI proposals for foreign banks to open Indian branches. Separately, the Finance Ministry approved a Rs 200 crore special assistance loan to Uttarakhand for reforms in its mining sector.

The Secretary of the Department of Financial Services, M Nagaraju, chaired the Inter-Departmental Committee (IDC) 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.

Uttarakhand Receives Financial Assistance for Mining Sector

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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