Private Foreign Banks

Foreign banks are institutions that provide various services and products to clients belonging to their home country and other countries. These banks have branches across the globe and support enterprises, companies, and other conglomerates. 

Private Foreign Bank

International banks with headquarters and branches in different countries are private foreign banks. These banks need to follow the rules and regulations given by home and host countries. 

Presently, there are 46 foreign banks in India, according to the Reserve Bank of India (As of July 14, 2020). These banks establish various bank branches to fulfil the needs and requirements of customers of international companies. However, foreign banks do not provide credit cards, online banking, or personal banking to Indian customers. The largest private foreign bank is Standard Chartered Bank from London. It has 100 branches across the nation. 

Primary Functions of Private Foreign Banks 

• Accepting deposits and providing loans related services in domestic currency form to foreign governments, enterprises, and individuals.
• Accepting deposits and converting them into foreign currencies for domestic and foreign commodities. 
• Managing and acting as an agent who supports the indicated loans, developing special financial requirements for international enterprises and projects. 
• Foreign money transactions, trading in gold and other precious metals, and international money transfers. 
• Documentation of letters of credit, multiple currency credit lines, bank acceptances, and other insurance facilities. 
• Marketing and trading of currency futures and other options related to the banking world. 

Information regarding some Foreign Banks 

Citibank 

It is a multinational bank that originated in New York. It is one of the oldest foreign banks in India, with the first branch established in Kolkata in 1902. Currently, there are 44 Citibank branches across the nation that provide a variety of services to its clients. The services provided by this bank are divided into two categories: Global Consumer Bank (GCB) and Institutional Clients Group (ICG). Apart from that, it also assists in retail banking products such as private banking, credit and debit cards, and investment banking.  

HSBC Bank 

This bank is part of HSBC Holdings plc., which is one of the largest banking and financial institutions. Its headquarters in India are in Mumbai, and its first ATM was opened in 1987. There are more than 25 branches of this bank in India, and they offer varied kinds of services to more than 100,000 clients. Typical services include private banking, consumer banking, money lending, internet banking, debit and credit cards, and international transfer. Other services offered by HSBC Bank are commercial banking, wealth management, and global marketing. 

Standard Chartered Bank 

It is one of the largest banks in India with 100 branches across the nation. It is famous due to trustworthy commitments provided to clients. Standard Chartered provides services related to commercial and private banking, corporate and institutional banking, and wealth management. It also offers electronic and online banking services to customers. 

Royal Bank of Scotland 

Popularly known as RBS, Royal Bank of Scotland started its journey with India in 2003 as a microfinance. It also supported the enterprise development through a three year Microfinance Technical Assistance program in the North and Northeast India region. Apart from these banking services and offers, it also provides Demat accounts, check protection, doorstep check pickup, and non-branch ATM/Dropboxes.

Barclays Bank 

Established in India in 1990, Barclays Bank is one of the leading banking institutions. The bank has 7 branches across the nation. The services associated with this bank are capital raising, cash management, comprehensive advisory, and financing and risk management. It covers both individual and corporate clients. Other services include portfolio management, wealth management, and investment banking. 

Conclusion 

Private foreign banks play a big role in the growth and development of the economic and financial status of a nation. There are more than 40 foreign banks in India that offer varied forms of services and benefits to private individuals, enterprises, and other companies and conglomerates. However, these banks need to follow the guidelines and legislation recommended by the Reserve Bank of India to function effectively and efficiently.