Reserve Bank of India (RBI), India’s central bank is the regulator for the Banking and Financial Services industry

Has issued guidelines for adoption of Basel II by December 2006

RBI approval is required for all foreign investment in this sector

Foreign banks can do business in India either by setting up branches or through a wholly owned subsidiary, after approval by RBI

Indian private banks can be 74% foreign owned, with a 5% cap on ownership by any one entity

Source:RBI,EC,TOI