Adapted from report in the Bhopal Central Chronicle, September 22, 2006
Sources within the financial world say that more than 18 foreign banks, encouraged by India’s economic liberalisation, have applied for licenses to open branches in Bhopal and other cities.
The big attraction, according to banking expert JN Kapoor, is the greatly increased buying power of Madhya Pradesh citizens.
Foreign banks are not bound by the same rules as their Indian counterparts, which are obliged by the Reserve Bank of India (RBI) to offer banking services in rural areas whenever they open a branch in a new city. Foreign banks are under no such compulsion.