If things go according to plan, then the first branch of Bank of China may open in Mumbai soon.
National Security Advisor (NSA) Ajit Doval has given the security clearance for opening of the bank, and has conveyed this to Maharashtra chief minister Devendra Fadnavis.
Fadnavis had recently accompanied Prime Minister Narendra Modi on a tour of China, where he aggressively pushed for Chinese investments in the state, and had a one-on-one meeting with Bank of China chairman Tian Guoli.
Chairman Guoli, though keen to open a branch in Maharashtra, had raised the issue of security clearance by intelligence wing of the country, which he feared, might cause problems. Fadnavis is learnt to have spoken to Doval who assured the chief minister that he has no objections to the proposal.
The NSA, however, told Fadnavis that Bank of China would have to adhere to the Reserve Bank of India's (RBI) and other regulatory guidelines before setting up its branch in Mumbai for which it has to seek the central bank's permission.
The Maharashtra government wants Chinese investments in developing and financing infrastructure and believes that Bank of China setting up operations in the financial capital would be a first step in that direction