India, Pakistan to allow each other's banks to set up branches across the b

[illusion8]

will people deposit their money in pakistani banks?

Any bank starting operations in India have to deposit security deposits with RBI, and depending on the amount they deposit they are allowed to receive money from customers in the form of FD's, this deposit collected by the RBI is to safeguard the depositors money. If in the event that the said bank defaults the deposit is seized and the money returned back to the customers, so in India depositing in any bank is relatively safe and risk free. The RBI sets a ceiling to the amount a bank can transact and the bank has to reveal all details to the RBI and are not allowed to accept monies over the set ceiling.

 

[Adnan Faruqi]

Very very bad decision by anti India weak PM Manmohan Singh

It will have very deep security implications.

 

[Armstrong]

Very very bad decision by anti India weak PM Manmohan Singh

It will have very deep security implications.

Pray tell me...what security implications ?

 

[TopCat]

Whats the big deal. I think we have both Indian and Pakistani banks in Bangladesh and they dont play any significant role here either. At best 1 or two branches mainly involved in import export clearance with their respective country. India does not have any global banking capacity neither it has any intention.

 

[T90TankGuy]

this is one CBM which will help cross border trade . when it comes to getting LC and BG . good news.

 

[Mo12]

great news, India are leaders in Islamic banking.

So this would benefit Pakistani people and Indian banks significantly!

 

[Facebooks]

While the ISI Pumps in Billions of Fake Rupiah Every Year with their Black Money Factories in Pakistan.

The Congress B*tches allow them a Legal Channel for them!

 

[illusion8]

Whats the big deal. I think we have both Indian and Pakistani banks in Bangladesh and they dont play any significant role here either. At best 1 or two branches mainly involved in import export clearance with their respective country. India does not have any global banking capacity neither it has any intention.

Those are just international branches of Indian banks, probably would be in Dhaka, those are to facilitate trade for Indian companies, I dont think they have permission to operate as any other normal Bangladeshi bank.

 

[Adnan Faruqi]

Pray tell me...what security implications ?

1. pakistani will come and work in India in the name of heading banks (yeah i know because of Got. rules majority will be Indians still there will be hundreds of pakistani in India)

2. ISI can use these banks to fund its agents and terrorists (as per Govt. of India ISI exports terrorism into India)

3. The ISI agents will get jobs in the name of working in the bank but they will do "other" activities.

4. These banks can fund and provide loans to ISi agents.

5. pakistan's economy or its banks are not strong so the money of Indian people is not safe there as they can run with the funds.

The list goes on.........

 

[somebozo]

Trade not Aid!

 

[Alchemy]

will people deposit their money in pakistani banks?

This is a good question , People will be skeptical of Investing in these banks on both sides ..... It would have been better if these banks were allowed to buy minority stakes in private commercial banks which is more practical than setting up the banks itself !

Having said that , i do welcome the move !

 

[Sugarcane]

hmmmmmmmm..........someone pinch me ! is our relations really improving??

Picture abhi baki hai mere dost

I never tried that and have no idea... and this was serious question .. what banks wants to rise capital they can accept deposits from outside country..
just asking as most of my savings are in deposit form...

Central/State Bank of country dictate the base rate. Bank gives interests on deposits and receives interests on sanctioned debts. So, it's up-to bank management how they will manage In/Out Rates to make profit and every bank has it's own business plan according to State Bank policies and market

 

[JAT BALWAN]

will people deposit their money in pakistani banks?

Why not??

I dont think most of people knows banks belonging country & If the bank have some attractive schemes, I`ll jump there without any hesitation...

 

[Sugarcane]

Any bank starting operations in India have to deposit security deposits with RBI, and depending on the amount they deposit they are allowed to receive money from customers in the form of FD's, this deposit collected by the RBI is to safeguard the depositors money. If in the event that the said bank defaults the deposit is seized and the money returned back to the customers, so in India depositing in any bank is relatively safe and risk free. The RBI sets a ceiling to the amount a bank can transact and the bank has to reveal all details to the RBI and are not allowed to accept monies over the set ceiling.

It's basic rule banking rule around the globe not just in India. But i am surprised why State Bank of Pakistan lowered the limit just to accommodate Indian Banks?

"There were some differences on the financial parameters for eligibility of banks as the Pakistani side had kept capitalisation norms too high. But the requirement has been scaled down now and the norms have been finalised,"

 

[JAT BALWAN]

Very very bad decision by anti India weak PM Manmohan Singh

It will have very deep security implications.

Please don`t spread stupid ideas dear...

Banks hain koi ISI ka headquarter nahi...