RBI approves Bank of China's India operations

Men walk near the Chinese national flag and a flag of the Bank of China in Beijing, China May 24, 2017. REUTERS/Thomas Peter - RTX37CXR

Bank of China will be open for operations in India following the Reserve Bank of India’s (RBI) approval on Wednesday, according to a report by News18.

Security clearances were given earlier in June.

This is the second Chinese bank to have received approval after the Industrial & Commercial Bank of China Ltd.

According to the report, the decision was reached after a meeting between Prime Minister Narendra Modi and Chinese President Xi Jingping on the sidelines of the Shanghai Cooperation Organisation (SCO) summit on June 9-10 in Qingdao.

The 106-year old bank has market capitalisation of $158.6 billion and is one of the four major state-owned banks in China.

According to the report, banks from Netherlands, Iran, South Korea and Malaysia had sought permissions from the RBI to open a branch in India as well.

There are 45 foreign banks with branches in India, with the UK’s Standard Chartered having the highest number at 100.