Reserve Bank of India (RBI) has granted permission to Bank of China to operate and open branches in India. It is said that the RBI has issued licence to Bank of China to set up its first branch in India. It was a commitment made by the prime minister to the President of China.
Bank of China is the second biggest bank in China by assets. It is one of the four major state-owned banks in Chinal. Bank of China have its branches in 27 countries including Australia, Ireland, Britain, France, Germany, Italy, Malaysia, South Africa, Japan, Singapore etc.
Decision on granting permission to Bank of China for opening branch in India was met on the sidelines of the Shanghai Cooperation Organisation (SCO) summit in Chinese city of Qingdao last month when Indian Prime Minister Narendra Modi had made a commitment to Chinese President Xi Jinping to allow Bank of China to set up branches in India.