India, Pakistan to open bank branches across the border ( AP WorldStream )
BOMBAY, India, Nov 08, 2005 (AP WorldStream via COMTEX) – India and Pakistan
have agreed to allow their banks to open branches in each other’s territory
after four-decade gap, the Indian central bank said.
The move is part the ongoing efforts by the two countries to improve economic
ties and resolve political differences to end decades-old hostilities.
“An understanding has been reached between the RBI and the State Bank of
Pakistan on granting permission for opening two branches of banks from India in
Pakistan and two branches of banks from Pakistan in India, on a reciprocal
basis,” a statement from the bank, officially called the Reserve Bank of India,
said late Monday.
Both sides will identify specific banks that would be permitted to open
branches, the statement said without giving a timeframe.
Banking ties were snapped after the two countries fought a war in 1965 - their
second after winning independence from Britain in 1947. Indian branches of
Pakistani banks were declared as enemy property and vice versa.
The decision to restore banking links was reached in August during talks between
commerce ministry officials of both countries. The Indian government said
requests to open bank branches in both countries would be expeditiously
processed to improve bilateral trade relations.