Kolkata, July 12 (IBNS) Reserve Bank of India (RBI) Deputy Governor Anand Sinha on Thursday said a guideline on foreign bank's shareholding in India would be formulated after the Banking Regulation (BR) Act amendment, but the draft guidelines by them lays down the limit at 49 percent for initial years.
"As I said, in our draft guidelines we have mentioned that for the initial few years it will be 49 percent, after that the usual one, the normal FDI rule will continue," Sinha said, explaining the present position on the RBI on the matter.
"We will finalize the guidelines after the BR Act Amendment comes through. At this stage I cannot say. I can only say that there is a feedback which has been put into the public domain," he said here at an Indian Chamber of Commerce function on small and medium enterprises.
To a question on any gold coin sale ban possibility by banks, he said there is no such definite proposal from RBI.
"Gold import has been a substantial part of current account deficit. Therefore it is being looked at as to what best can be done," Sinha said.
"Import is one aspect, another is the existing gold in the country, to bring it out to satisfy the demand. Several proposals are there. There is a committee in fact looking into all the aspects. We will take a decision later," he said.
Asked about the outlook on inflation and growth, he said one should wait till the month end for the monetary policy to be announced.
"Wait for the monetary policy which is at the end of this month. Do not ask me for prognosis. You have to wait till the end of the month," he told journalists.
He said in RBI monetary policy exercise is an intense exercise in which a large number of data is analysed and IIP (industrial production index) will also be taken into account.
To a question on bank's high debt exposure in case of Kingfisher Airlines, he said banks have to realize their dues.
"Restructuring does not require bank approval. Restructuring is a process which the banks can run themselves. RBI can come for certain parameters for restructuring. But if certain benefits in terms of assets classification is required then you have to come to RBI," he said.
Asked if he foresees more debt restructuring among big corporate, he said: "Pressure on restructuring has increased because the economy not only in India but worldwide is in depression."
"Obviously restructuring has increased substantially and it will involve big corporate and medium sized companies also. That is what we are given to understand," he said.
