Home News Indian central bank puts on hold approval to UBS bank

Indian central bank puts on hold approval to UBS bank

Published on 07/02/2008

7 February 2008

MUMBAI, India – India’s central bank has put on hold preliminary approval it had given to Zurich-based UBS AG to set up a representative office in the country, a bank official said Wednesday.

Alpana Killawala, spokeswoman for the Reserve Bank of India said some investigations needed to be completed before approval was sanctioned.

“The in-principal approval given to UBS has been put on hold pending investigations,” she said without elaborating.

The Swiss lender’s banking license was placed on hold reportedly due to its reluctance to cooperate with India in tracking money transfers, according to Indian newspaper Mint, which cited unnamed sources in a report published Wednesday.

A spokesman for UBS said it was awaiting the RBI’s decision on its India banking license.

UBS currently has a wealth management or investment banking office in India.

India’s central bank had initially issued a license to UBS last year permitting it to open its first branch in Mumbai, India’s financial hub.

[Copyright ap 2008]