Mumbai: State Bank of India (SBI) and ICICI Bank have applied to the Monetary Authority of Singapore for a qualified full banking (QFB) licence. The regulator, in the meantime, is not expected to insist on a government guarantee from SBI for granting it approval to launch full-fledged banking operations in the South-East Asian country.
A QFB licence allows banks to access the retail market in Singapore. Under the approval, banks can set-up offices, automated teller machines (ATMs) and branches in 25 locations. Besides, banks can transact business in Singapore dollars. Under the Comprehensive Economic Cooperation Agreement (CECA) between India and Singapore, MAS is prepared to offer three QFB licences to Indian banks that meet prudential criteria. According to the CECA, India had to give three Singapore banks free access to the Indian banking space. The CECA was implemented in 2005 and covers investment, trade in services and merchandise goods. Singapore banking major DBS Bank has two branches in India. The other two banks to be considered under the treaty are United Overseas Bank and Overseas Chinese Banking Corporation.
The Reserve Bank of India (RBI) had preferred to treat Temasek and the Government of Singapore Investment Corporation (GIC) as related entities as the Government of Singapore has a significant shareholding in the entities, restricting them from raising their holding in ICICI Bank.
A QFB licence allows banks to access the retail market in Singapore. Under the approval, banks can set-up offices, automated teller machines (ATMs) and branches in 25 locations. Besides, banks can transact business in Singapore dollars. Under the Comprehensive Economic Cooperation Agreement (CECA) between India and Singapore, MAS is prepared to offer three QFB licences to Indian banks that meet prudential criteria. According to the CECA, India had to give three Singapore banks free access to the Indian banking space. The CECA was implemented in 2005 and covers investment, trade in services and merchandise goods. Singapore banking major DBS Bank has two branches in India. The other two banks to be considered under the treaty are United Overseas Bank and Overseas Chinese Banking Corporation.
The Reserve Bank of India (RBI) had preferred to treat Temasek and the Government of Singapore Investment Corporation (GIC) as related entities as the Government of Singapore has a significant shareholding in the entities, restricting them from raising their holding in ICICI Bank.
No comments:
Post a Comment