Report from the Deputy High Commission in Mumbai on latest developments in India's banking sector.
The Reserve Bank of India (RBI) has issued final guidelines for setting up Small Banks and Payments Banks. This is part of the RBI’s differentiated banking strategy and expected to further financial inclusion. FDI up to 74% is currently allowed and will be amended in line with the rules for private banks. Payment banks are likely to attract interest from UK companies with the appropriate technological capability.