RBI open to non-bank arms route to end stalemate with ESMA: Report

The proposal came up in a meeting between RBI deputy governor T Rabi Sankar and senior officials from European banks

The Reserve Bank of India (RBI) is open to European banks trading in government securities and carrying out custody businesses via their locally incorporated non-banking arms, The Economic Times reported on Friday.

The proposal was discussed during a meeting between RBI deputy governor T Rabi Sankar and senior officials of the EU banks with operational branches in India. The route of using a non-bank or a primarily dealer arm was suggested by Deutsche Bank, but other European banks may not accept it, the report added.

However, if the proposal materializes, it would be seen as a strong signal