The Reserve Bank of India on Wednesday issued a licence to Bank of China to operate in India, according to sources.
According to reports, the decision was based on the commitment made by Prime Minister Narendra Modi to the Chinese leadership.
Following this, the 106-year-old Bank of China will open a branch in India.
Last month Prime Minister Narendra Modi met Chinese President XiJinping ahead of the Shanghai Cooperation Organization (SCO) Summit in Qingdao, China. During the meeting, they discussed the issues of security, economic cooperation, and people-to-people exchanges.
The Bank of China (BoC) opened its first branch in South Asia in Pakistan’s Karachi last year.