MHA raises objection to Industrial and Commercial Bank of China's proposal to open second branch in India

The Ministry of Home Affairs (MHA) has reportedly raised objections to a proposal by the Industrial and Commercial Bank of China (ICBC) to open a second branch in India.

FP Staff July 09, 2018 18:50:09 IST
MHA raises objection to Industrial and Commercial Bank of China's proposal to open second branch in India

Just days after the Reserve Bank of India (RBI) issued a licence to Bank of China to launch operations in India, the Ministry of Home Affairs has reportedly raised objections to a proposal by the Industrial and Commercial Bank of China (ICBC) to open a second branch in India.

MHA raises objection to Industrial and Commercial Bank of Chinas proposal to open second branch in India

Representational image. Reuters

Sources quoted by The Indian Express said the MHA has voiced concerns that ICBC has employed more than the authorised number of Chinese nationals at its Mumbai branch.

The MHA, according to the report, told the finance ministry that ICBC's Mumbai branch has about 11-12 Chinese nationals while it is only authorised to employ a total of three or four Chinese nationals.

Further, only three-four Chinese nationals working with the ICBC are registered with the Foreigners Regional Registration Office (FRRO). According to International Business Times, the Chinese nationals, who are not registered with the FRRO, leave just before the completion of six months. By doing so, they try to evade the process of registration.

Home ministry rules state that all foreigners (including foreigners of Indian origin) visiting India on long-term (more than 180 days) visas are required to get themselves registered with the FRRO.

This comes after ICBC cited some language issues and requested RBI to allow more Chinese expatriates to be employed in Mumbai branch. The bank said that since most people in China do not speak English and Indians don't speak Chinese, more expats should be allowed, reported The Economic Times. The RBI forwarded the request to the government, the report added.

Meanwhile, the RBI has issued a license to Bank of China and its approval follows Prime Minister Narendra Modi's commitment that India would expedite procedures to allow the BoC to set up branches in India. Security clearances for the bank were given earlier.

With inputs from PTI

Updated Date:

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