The Reserve Bank of India has issued licence to Bank of China to launch operations in India, people familiar with the matter said on Wednesday. Prime Minister Narendra Modi had made a commitment to Chinese President Xi Jinping to allow Bank of China to set up branches in India when they met on the sidelines of the Shanghai Cooperation Organisation (SCO) summit in Chinese city of Qingdao last month. “The RBI has issued licence to Bank of China to set up its first branch in India. It was a commitment made by the prime minister to the President of China,” said a source.

The Reserve Bank of India has issued licence to Bank of China to launch operations in India, people familiar with the matter said on Wednesday. Prime Minister Narendra Modi had made a commitment to Chinese President Xi Jinping to allow Bank of China to set up branches in India when they met on the sidelines of the Shanghai Cooperation Organisation (SCO) summit in Chinese city of Qingdao last month. “The RBI has issued licence to Bank of China to set up its first branch in India. It was a commitment made by the prime minister to the President of China,” said a source.