Mumbai: The Reserve Bank of India (RBI) has approved the application of UBS AG to open a retail branch in India.
The Indian central bank had earlier put the application on hold, pending clarification of some transactions. (See: RBI puts UBS licence on hold, appoints finance ministry official on its panel)
A retail banking licence from India's central bank is needed for any entity to offer banking services such as accepting deposits and offering loans from the general public. Subsequently, foreign banks have to apply to the RBI separately to open branches.
UBS had applied for a retail banking licence with the RBI in 2004, and will now be able to tap into the wealth of the burgeoning middle and upper classes of the growing Indian economy. The RBI Deputy Governor, V Leeladhar, told media that the application had been cleared, when asked about the UBS application at an event.