India, Pak may ease banking, visa norms
Both sides will set up banks in each other's territories. Visa norms for Pak businessmen may be eased too.
By Rajeev Jayaswal, TNN |
NEW DELHI: India and Pakistan may soon relax banking and visa norms. While both sides have agreed to set up banks in each other’s territories, the Indian government has expressed its willingness to ease visa restrictions for Pakistani businessmen.
| An understanding has been reached between the Reserve Bank of India (RBI) and the State Bank of Pakistan (SBP) on granting permission for opening two branches of banks on a reciprocal basis. New Delhi has also agreed to introduce a new category of 6-month multiple-entry business visa with a maximum stay of 90 days. The two neighbours have mutually agreed to update visa agreement of 1974. |
An understanding has been reached between the Reserve Bank of India (RBI) and the State Bank of Pakistan (SBP) on granting permission for opening two branches of banks on a reciprocal basis, sources in the government said. Identified banks from India are Bank of India (BoI) and the State Bank of India (SBI).
“BoI and the SBI have evinced interest in reviving branches in Pakistan,” a source in the finance ministry said. Banks of both sides will, however, have to fulfil all regulatory requirements of respective countries. At present, no Indian bank operates in Pakistan.
The RBI and the SBP may decide on granting approval for opening additional branches as per the licensing norms applicable to foreign banks from time to time, sources said. New Delhi has also agreed to introduce a new category of 6-month multiple-entry business visa with a maximum stay of 90 days, they added.
“The government is waiting for Islamabad’s response in this direction,” an insider let on. It’s understood that the duration of six months could also be extended to one year.
New Delhi and Islamabad have liberalised the visa policy recently. According to the ministry of external affairs sources, the High Commission of India in Islamabad has been liberally and expeditiously granting visas to Pakistani businessmen. It’s even faster in such cases where visits have been recommended by the chambers of commerce of either side. The commission has also been granting non-reporting visas (without police verification) to businessmen except in cases of visit to places restricted for Pakistani nationals.
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The commission has recently facilitated collection of visa applications through two courier companies. What’s more, visa box facilities have been provided in all major cities in Pakistan. The two neighbours have mutually agreed to update visa agreement of 1974. A draft India-Pakistan visa pact that includes the category of business visa, among others, was given to the Pakistan side in ’05.
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