Categories: Business

China formulated strategy to enter into Indian banking sector, CAIT demands banks to return Chinese investment

Photo: ASIA TIMES

China has designed a strategy to intrude into Indian banking sector, says: CAIT

new Delhi. The Confederation of All India Traders (CAT) has strongly urged Finance Minister Nirmala Sitharaman to return the investment to China to ICICI Bank and NBFC unit HDFC, strongly condemning the investment in ICICI Bank by the People's Bank of China.

China's central bank People's Bank of China (PBOC) has bought stakes in both these companies. Kate recently criticized ICICI Bank, which raised Rs 15,000 crore, saying that despite the anti-China sentiment in the country, the bank allowed China to buy a stake.

Kate's Secretary General Pravin Khandelwal said that it is clear that China's intention is to infiltrate the Indian banking and financial sector, which is very strong and is very important for the country's economic health. He further said that the government had made efforts to monitor the foreign investment system, but no concrete steps have been taken by the Reserve Bank on funds and investments coming from China.

Significantly, ICICI Bank recently raised Rs 15,000 crore from 350 investors through QIP, one of which was named People's Bank of China. It had bought 15 crore shares in the bank. Earlier, PBOC had also raised its investment above 1 per cent by buying 0.2 per cent stake in HDFC. However, increasing military tensions between India and China in the Galvan Valley are holding anti-China tensions.

In April, Sarakar made it mandatory to seek regulatory permission to tighten up on investments from neighboring countries. This decision included the countries whose border meets India. This decision was taken to curb investment coming from China. In July, India banned 59 apps from China, including TickTalk, Halo and WeChat. The Government of India took this decision in view of the threat looming over India's unity and sovereignty.

This post was published on August 19, 2020 3:06 pm

Content Team

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