Indian banks face discrimination in foreign countries: FM

New Delhi, Aug1: Finance Minister P Chidambaram today said Indian banks were facing some difficulties and discrimination in opening branches in foreign countries.

Replying to a question in the Rajya Sabha, he admitted that it was true that in countries like US, Malysia and Indonesia, domestic laws were creating difficulties for Indian banks.

''We took up the matter with the United States government in the last meeting of the India-US Joint Forum and will continue to persue the matter,'' Mr Chidambaram told the House during the Question Hour.

He said every country has its own financial regime, and the US Federal Bank had very strict norms, but there was discrimination too in regarding capital adequacy, requirement of multuiple licences and so on.

However, these were the matter which could be resolved and the government was doing whatever was necessary, he added.

Mr Chidambaram said that at present the request of six public sector banks for opening branches or upgrading the existing ones was pending with the Reserve Bank of India.

''The RBI endeavours to process reqests of banks to open branches promptly, preferably within a period of six months, on the basis of certain parameters keeping in view the bankss' ability to withstand international competition,'' he said.

Indian banks have at present 110 branches abroad, 18 subsidiaries and six joint ventures, Mr Chidambaram said.

UNI