India operation: UBL approaches RBI

RIZWAN BHATTI

KARACHI: Another Pakistani bank has approached Reserve Bank of India (RBI) to explore banking operation opportunities in the neighbouring country.

Sources in banking sector said Monday that leading Pakistani bank - United Bank Limited - has formally moved toward Indian banking regulator - RBI - to obtain information about the regulatory requirement for starting banking operation in India.

In recent peace dialogue and trade between two neighbouring countries, when the trade volume of both sides is growing rapidly, it has been decided in principle between central banks of Pakistan and India to allow two banks from each country for banking operation to facilitate traders of both countries.

Following the procedure, National Bank of Pakistan (NBP) and United Bank of Pakistan (UBL) have already got initial permission from State Bank of Pakistan (SBP) for commencement of banking operation in India.

About two months ago, the SBP granted NoC to NBP and UBL for banking operation in India. After getting NoC from SBP, NBP has already approached Reserve Bank of India for operation in India and now another leading Pakistani bank UBL has also approached RBI to explore banking opportunities in India.  Sources said UBL is seeking information regarding requirements of opening branches in India and in its letter to RBI, it has asked about the formal and regulatory formalities/requirements for a foreign bank, which is willing to open bank branch/start its operation in India. “Presently, UBL application is at a very initial stage and being reviewed by RBI authorities,” sources added.

After successfully getting NoC from SBP, NBP and UBL are seriously considering starting banking operation in India.