Foreign banks: Was Rajan's mention of reciprocity the deal breaker?

The marked shift in the foreign-bank narrative in the post-reform period must also be seen in another context - the renewed talk of privatisation of a clutch of state-run banks

The number of foreign bank branches in India soared to 861 in March 2022, from just 295 in FY17, even as the number of such entities in the country remained almost the same at 45. No, these banks were not on an expansion spree. As the Reserve Bank of India’s (RBI’s) Report on the Trend and Progress of Banking in India 2021-22 notes, this was mainly because DBS Bank (India) acquired Lakshmi Vilas Bank (LVB), operating through the wholly owned subsidiary (WoS) route.

The marked shift in the foreign-bank narrative in the post-reform period must also be seen in another