 "RBS gives up primary dealer licence")
The Reserve Bank of India (RBI) on Thursday said Royal Bank of Scotland (RBS) had surrendered its licence to conduct primary dealer (PD) business in the country.
“In view of the request received from RBS NV, India, to surrender its authorisation for conducting PD business, RBI has cancelled the said authorisation of the bank with effect from December 2, 2013,” the banking regulator said.
RBI had permitted RBS to carry out PD business in India in May, 2008. The cancellation will lead RBS to stop undertaking business as PD in the government securities market.
The move follows RBS' decision to sell its business banking, credit cards and mortgage operations in India to Ratnakar Bank.
In August 2013, the foreign lender said it had signed an agreement with the Indian private lender to sell these businesses, comprising about 120,000 customers.
The foreign lender has also decided to close a majority of its India branches as a part of its process to consolidate its retail and commercial banking business here.
“In view of the request received from RBS NV, India, to surrender its authorisation for conducting PD business, RBI has cancelled the said authorisation of the bank with effect from December 2, 2013,” the banking regulator said.
RBI had permitted RBS to carry out PD business in India in May, 2008. The cancellation will lead RBS to stop undertaking business as PD in the government securities market.
The move follows RBS' decision to sell its business banking, credit cards and mortgage operations in India to Ratnakar Bank.
In August 2013, the foreign lender said it had signed an agreement with the Indian private lender to sell these businesses, comprising about 120,000 customers.
The foreign lender has also decided to close a majority of its India branches as a part of its process to consolidate its retail and commercial banking business here.