HISTORY OF FOREIGN BANKS IN INDIA

In the earlier stages of establishment of foreign banks in India, their main business was financing of foreign trade. In fact they continued to have complete monopoly over this field till about the fifties. The evidence by various witnesses before the Indian Central Banking Enquiry Committee conclusively proved their hold over the foreign trade of India. Over and above these banks started competing recently with Indian Banks in financing of internal trade also. Manu Subedar', in his Minority Report, Indian Central Banking Enquiry Committee, their main business is not the financing of foreign trade but internal trade of India. The operations of these banks are not confined to the financing of foreign trade. The deposits that they are able to collect in India is not very far in excess of what would be required if confined themselves to financing of foreign trade.